Croatia can be proud of its entry to the Eurozone and the Schengen area because it will attract investments and help create jobs and growth, and it could become a European renewable hub, European Commission President Ursula von der Leyen said in an interview with Hina.

Von der Leyen will visit Croatia on New Year’s Day, when check points are removed and border controls cancelled on Croatia’s border with Slovenia and Hungary and when the country introduces the common European currency as legal tender.

In her answers to Hina’s questions, von der Leyen stresses that Croatians have worked very hard for that day to come.

“I know how much effort it took to meet all the requirements to join Schengen and to implement the reforms necessary to join the Eurozone. You can be proud of this.”

With that step, Croatia is completing its full European integration and will enjoy some of the best benefits the EU can provide, she said.

“Travelling without internal border controls and switching to a currency that will attract more investment and create jobs and growth.

“This is not only a great achievement for Croatia. This is further evidence of the strength and unity of our Union. With Croatia in the Eurozone, 20 EU Member States and 347 million EU citizens will share the EU’s common currency. This will give us even more clout on the international stage,” von der Leyen says.

An enlarged Schengen area will make Europe stronger and more prosperous, by bringing people closer together and facilitating business, she says.

“So in sum: Europe makes Croatia stronger. And Croatia makes Europe stronger.”

When will Croatia reach EU average?

Asked about the short and medium-term prospects for Croatia to catch up with the European average in terms of the standard of living, the EC president said that Croatia has steadily reduced the gap with the EU average in terms of living standards since it joined 10 years ago.

“Your economy has proven its resilience after the COVID crisis. You were hit hard but recovered fast and strong. So, the potential is there. Now it is about unleashing it, fully, and making your economy more productive.”

This is where NextGenerationEU, Europe’s recovery plan, comes into play, she said.

“A real roadmap for the future, supported by massive investments. EUR 6.3 billion from NextGenerationEU, EUR 15 billion altogether if you add Cohesion Policy funds on top.

“But it’s not just about funding. The Croatian recovery plan includes key reforms, expected to have a great impact on the economy,” she said.

“Boosting employment by redesigning labour market policies. Equipping students and workers with the right skills to succeed in the green and digital transition. Improving Croatia’s business environment,” she said, noting that this would help make Croatia’s economy more competitive and innovative.

“So Croatia is moving in the right direction. And now with its entry in the Eurozone, there will be even more opportunities coming.”

Big role in transition to clean energy

Von der Leyen underlined that Croatia can play a big role in the transition to clean energy sources, which is important in securing Europe’s energy independence in the context of the war in Ukraine.

“We have diversified our energy supplies away from Russia, towards reliable energy partners. We have saved energy. And we have filled our gas storage, to be safe and warm this winter.”

“… But there is much more work to do, if we want to be safe next winter… We know what we need to do. We need to keep securing as much LNG as we did this year… We must make joint purchasing of gas at EU level a reality… and we have to boost our production and use of renewables. Renewables are the clean, home-grown energy we need for the future,” von der Leyen said.

Croatia can and must play a central part here, she said.

“From hydropower to solar and wind: your potential is amazing. You are already one of the top EU countries in terms of renewable use. And you can become a real European renewable hub. This will be good for your industry and for Europe as a whole,” the EC president said.