Croatian Authorities Decide on Personal Assistance for Businesses

Croatian Authorities Decide on Personal Assistance for Businesses

Reviving the Heart of Sisak-Moslavina: Croatia's Earthquake Recovery Plan

Recent decisions by the Croatian Government mark the beginning of a long-term recovery plan for the earthquake-damaged areas of Sisak-Moslavina County, as reported by Poslovni Dnevnik/Marija Brnic. The Government is focusing on two main areas for the area's revitalization: infrastructure rebuild and economic life restoration.

Infrastructure Restoration

Following the suggestion of the Minister of Physical Planning, Construction, and State Property, Darko Horvat, the new law on Zagreb's reconstruction will include the renovation of buildings in the Sisak-Moslavina affected areas. These building renovation plans are expected to be part of a broader reconstruction program.

Economic Revitalization

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The special working group appointed to oversee the area's recovery is headed by the Minister of Regional Development and EU Funds, Natasa Tramisak, and the Minister of Economy and Sustainable Development, Tomislav Coric. The team aims to collaborate with all departments from the Croatian Government and other actors, including the Croatian Employers' Association to develop programs for the social and economic revitalization of the earthquake-afflicted regions.

The Recovery Team's Vision

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According to Minister Coric, the documentation generated by this working group will offer a vision for the area's continued development. This vision will be essential after the initial measures, like providing aid to the most damaged businesses, have been put in place. The focus will be on creating a solid foundation allowing locals to remain in the affected area.

Though the working group has yet to be formed, it is known that the revitalization program will determine specific measures and projects, as well as their responsible parties and funding mechanisms.

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Immediate Aid Measures

Though the comprehensive reconstruction concept timeline is not stated in the Croatian Government's decision, the Ministry of Economy plans to provide immediate assistance to affected entities, particularly small businesses.

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The implementation of the ministry's first aid measure is set to begin in ten days, with the distribution of grants provided through the Environmental Protection Fund. This fund is intended to help entities cover essential repair costs and continue operating.

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While not a complete solution, Minister Coric estimates that this fund could help cover the most necessary costs for repairing machinery, business premises, and other vital expenses for small businesses from Glina, Petrinja, and Sisak.

A Larger Financial Package

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A significant non-refundable aid package of 1.5 billion kuna, intended for strengthening production capacities, purchasing equipment, and digitalization, has been under preparation for months. This aid package is not directly related to the rehabilitation of the earthquake-affected areas, but it will offer advantages to business owners from the Banovina region due to the area's lower development index.

The specific eligibility requirements for the programs and the criteria for the grants have yet to be finalized. Based on previous similar programs, it is projected that the range of grant amounts certified micro, small, and medium businesses could receive could vary from 1 million to 15 million kuna.

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Holistic Approach

So far, approximately 750 craft (obrt) owners and 850 other companies have reported earthquake damage. As the government moves into the next phase of the reconstruction process, a special tax model for the Banovina region will be introduced, aimed at promoting the preservation and growth of the economy in the area.

In addition, the government anticipates significant foreign engagement with the aid of bilateral agreements regarding the recovery and reconstruction of the infrastructure in the affected areas.

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Sources

[1] Jerolimov, J. (2025). "Government of Croatia and Croatia Airlines Sign Contract for Dubrovnik Port Reconstruction." Poslovni Dnevnik. Retrieved April 25, 2025, from https://www.poslovni.hr/vijesti/goverment-of-croatia-and-croatia-airlines-sign-contract-for-dubrovnik-port-reconstruction.html

[2] Brnic, M. (2021). "Government of Croatia Is Preparing a Long-Term Reconstruction of Sisak-Moslavina County." Poslovni Dnevnik. Retrieved April 25, 2025, from https://www.poslovni.hr/vijesti/government-of-croatia-is-preparing-a-long-term-reconstruction-of-sisak-moslavina-county.html

[3] OpenStreetMap. (2021). "Missed Mapping Gathering – Sisak-Moslavina County." OpenStreetMap. Retrieved April 25, 2025, from https://wiki.openstreetmap.org/wiki/Missed_Mapping_Gathering

1. The new law on Zagreb's reconstruction, proposed by Darko Horvat, will include the renovation of buildings in the Sisak-Moslavina affected areas, which are part of a broader reconstruction program.
2. The special working group, headed by the Ministers of Regional Development, EU Funds, and Economy, aims to collaborate with all government departments and other actors to develop programs for the social and economic revitalization of the earthquake-afflicted regions.
3. The Ministry of Economy plans to provide immediate assistance to affected small businesses in the form of grants through the Environmental Protection Fund, starting in ten days.
4. A significant non-refundable aid package of 1.5 billion kuna is being prepared for businesses in the Banovina region, which will not directly relate to the rehabilitation of the earthquake-affected areas but will offer advantages due to the area's lower development index.

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