National plan for industrial development of the Republic of Croatia scaled

Significant investments from the state budget, EU funds and alternative sources of financing are planned.

On Monday, the government adopted the National Plan for the Development of Industry of the Republic of Croatia from 2027 to 2034 and the Action Plan for its implementation from 2027 to 2030, with which it aims to create a more competitive, cleaner, more resilient and safer Croatian industry.

The national plan defines the priorities of industrial development aimed at strengthening competitiveness, decarbonization of production processes, technological progress and creation of preconditions for the development of new industries with high added value. The goal is to connect the green and digital transition with increasing the competitiveness of the economy.

According to the Government's assessment, the document represents a strategic framework for the implementation of public policies in the field of industry, with a special emphasis on the processing industry.

The plan includes measures to modernize and digitize industry, increase production capacity, grow production, productivity, and exports, develop digital and green skills, and encourage a circular economy and more efficient use of resources.

Three main goals

The plan is structured around three main goals. The first is a competitive and export-oriented industry, focused on the growth of productivity, competitiveness and exports. The second is clean industry, with an emphasis on decarbonization, greater energy efficiency and the use of renewable energy sources. The third goal is a resilient and secure industry, which includes strengthening resilience and greater investment in research and development in strategic areas.

The government also adopted the Action Plan for the implementation of the National Plan until 2030, which defines measures, performance indicators, deadlines, competencies and estimates of necessary costs.

The total estimated cost of implementing the National Plan from 2027 to 2034 is 2,998 billion euros, while the estimated cost of the Action Plan until 2030 is 1,87 billion euros.

Funds will be provided from the state budget, European Union funds and other available funding sources.

Prime Minister Andrej Plenković said that the goal is to modernize and digitalize industry so that it is clean and energy efficient, resilient and open to innovation.

"These are the fundamental goals of the National Plan."

Economy Minister Ante Šušnjar said that the Plan aims to establish a single strategic framework for the development of Croatian industry and clearly determine its future direction.

The focus is primarily on the processing industry, its modernization, increasing productivity and added value, and strengthening its position on the European and global market.

"Croatian industry must increase productivity and added value, speed up digitization and automation, carry out a green transformation and engage more strongly in international value chains," said Šušnjar.

He added that the three priorities of the plan are not separate because a competitive industry must simultaneously be technologically advanced, sustainable and able to respond to future disruptions.

Measurable goals by 2034.

Specific and measurable goals have been set for each of the three priorities by 2034.

In order to create a more competitive and export-oriented industry, the goal is to increase the share of gross added value of the manufacturing industry in GDP from 10,6 to 12,5 percent, while the digital intensity index should increase from 24,4 to 31 percent.

To make industry cleaner, the goal is to significantly reduce emissions intensity. Measures include energy efficiency, electrification, energy storage and clean technologies, including hydrogen.

In order to strengthen the industry's resilience and security, an increase in investment in research and development in the gross added value of the processing industry is foreseen from 1,65 to 2,8 percent.

"This plan is not just a declarative document because behind the goals are concrete instruments and concrete investments," Šušnjar asserted.

The largest portion of the investment is planned for the first phase of implementation, from 2027 to 2030, when around 1,9 billion euros of investment is planned. From 2031 to 2034, slightly more than 1,1 billion euros are planned.

The largest single annual investment is planned for 2029, when it should reach around 642 million euros.

"With the national plan, we are setting the framework for Croatian industry to be more technologically advanced, more productive and more resilient by 2034," said Šušnjar.

 

Read more about the National Plan for Industry Development on the website of the Ministry of Economy

https://mingo.gov.hr/vijesti/na-sjednici-vlade-usvojen-nacionalni-plan-za-razvoj-industrije/10433

 

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