Recommendation for a COUNCIL RECOMMENDATION on the 2020 National Reform Programme of Croatia and delivering a Council opinion on the 2020 Convergence Programme of Croatia
Date: 2020-05-20
Institutions: European Commission, Secretariat-General
Subjects: Croatia, aid to undertakings, economic policy, economic recovery, economic reform, epidemic, infectious disease, investment, labour market, stability pact, stability programme

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   EUROPEAN COMMISSION  Brussels, 20.5.2020  COM(2020) 511 final  Recommendation for a COUNCIL RECOMMENDATION on the 2020 National Reform Programme of Croatia and delivering a Council opinion on the 2020 Convergence Programme of Croatia  
 
Recommendation for a 

COUNCIL RECOMMENDATION 

on the 2020 National Reform Programme of Croatia and delivering a Council opinion 
on the 2020 Convergence Programme of Croatia 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 121(2) and 148(4) thereof, 

Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of 
the  surveillance  of  budgetary  positions  and  the  surveillance  and  coordination  of  economic 
policies1, and in particular Article 9(2) thereof, 

Having  regard  to  Regulation  (EU)  No  1176/2011  of  the  European  Parliament  and  of  the 
Council  of  16  November  2011  on  the  prevention  and  correction  of  macroeconomic 
imbalances2, and in particular Article 6(1) thereof,  

Having regard to the recommendation of the European Commission, 

Having regard to the resolutions of the European Parliament, 

Having regard to the conclusions of the European Council, 

Having regard to the opinion of the Employment Committee, 

Having regard to the opinion of the Economic and Financial Committee, 

Having regard to the opinion of the Social Protection Committee, 

Having regard to the opinion of the Economic Policy Committee, 

Whereas: 

(1) 

(2) 

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On  17  December  2019,  the  Commission  adopted  the  Annual  Sustainable  Growth 
Strategy,  marking  the  start  of  the  2020  European  Semester  for  economic  policy 
coordination. It took due account of the European Pillar of Social Rights, proclaimed 
by the European Parliament, the Council and the Commission on 17 November 2017. 
On  17  December  2019,  on  the  basis  of  Regulation  (EU)  No  1176/2011,  the 
Commission also adopted the Alert Mechanism Report, in which it identified Croatia 
as one of the Member States for which an in-depth review would be carried out.  
The 2020 country report for Croatia3 was published on 26 February 2020. It assessed 
Croatia’s progress in addressing the country-specific recommendations adopted by the 
Council  on  9  July  20194,  the  follow-up  given  to  the  recommendations  adopted  in 
previous years and Croatia’s progress towards its national Europe 2020 targets. It also 

OJ L 209, 2.8.1997, p. 1. 
OJ L 306, 23.11.2011, p. 25. 
SWD(2020) 510 final. 
OJ C 301, 5.9.2019, p. 117. 

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(3) 

(4) 

(5) 

(6) 

included  an  in-depth  review  under  Article  5  of  Regulation  (EU)  No  1176/2011,  the 
results of which were also published on 26 February 2020. The Commission’s analysis 
led  it  to  conclude  that  Croatia  is  experiencing  macroeconomic  imbalances  linked  to 
high levels of public, private and external debt in a context of low potential growth.  

On 11 March 2020, the World Health Organization officially declared the COVID-19 
outbreak  a  global  pandemic.  It  is  a  severe  public  health  emergency  for  citizens, 
societies  and  economies.  It  is  putting  national  health  systems  under  severe  strain, 
disrupting  global  supply  chains,  causing  volatility  in  financial  markets,  triggering 
consumer  demand  shocks  and  having  negative  effects  across  various  sectors.  It  is 
threatening  people’s  jobs,  their  incomes  and  companies’  business.  It  has  delivered  a 
major  economic  shock  that  is  already  having  serious  repercussions  in  the  European 
Union. On 13 March 2020, the Commission adopted a Communication5 calling for a 
coordinated economic response to the crisis, involving all actors at national and Union 
level. 

Several  Member States  have declared a state of  emergency or introduced emergency 
measures.  Any  emergency  measures  should  be  strictly  proportionate,  necessary, 
limited in time, and in line with European and international standards. They should be 
subject to democratic oversight and independent judicial review. 

On  20  March  2020,  the  Commission  adopted  a  Communication  on  the  activation  of 
the general escape clause of the Stability and Growth Pact6. The clause, as set out in 
Articles 5(1), 6(3), 9(1) and 10(3) of Regulation  (EC) 1466/97 and Articles 3(5) and 
5(2) of Regulation (EC) 1467/97, facilitates the coordination of budgetary policies in 
times  of  severe  economic  downturn.  In  its  Communication,  the  Commission  shared 
with the Council its view that, given the expected severe economic downturn resulting 
from  the COVID-19 outbreak, the  current  conditions  permit  activation of the clause. 
On  23  March  2020,  the  Ministers  of  Finance  of  the  Member  States  agreed  with  the 
assessment of the Commission. The activation of the general escape clause allows for 
a temporary departure from the adjustment path  towards the medium-term budgetary 
objective,  provided  that  this  does  not  endanger  fiscal  sustainability  in  the  medium 
term. For the corrective arm, the Council may also decide, on a recommendation from 
the Commission,  to  adopt  a revised  fiscal  trajectory. The  general  escape  clause does 
not suspend the procedures of the Stability and Growth Pact. It allows Member States 
to depart from the budgetary requirements that would normally apply while enabling 
the  Commission  and  the  Council  to  undertake  the  necessary  policy  coordination 
measures within the framework of the Pact. 

Continued  action  is  required  to  limit  and  control  the  spread  of  the  pandemic, 
strengthen  the  resilience  of  the  national  health  systems,  mitigate  the  socio-economic 
consequences through supportive measures for business and households and to ensure 
adequate  health  and  safety  conditions  at  the  workplace  with  a  view  to  resuming 
economic  activity.  The  Union  should  fully  use  the  various  tools  at  its  disposal  to 
support  Member  States’  efforts  in  those  areas.  In  parallel,  Member  States  and  the 
Union should work together to prepare the measures necessary to get back to a normal 
functioning of our societies and economies and to sustainable growth, integrating inter 
alia  the  green  transition  and  the  digital  transformation,  and  drawing  all  lessons  from 
the crisis. 

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COM(2020) 112 final. 
COM(2020) 123 final. 

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(7) 

(8) 

(9) 

The  COVID-19  crisis  has  highlighted  the  flexibility  that  the  single  market  offers  to 
adapt  to  extraordinary  situations.  However,  in  order  to  ensure  a  swift  and  smooth 
transition to the recovery phase and the free movement of goods, services and workers, 
exceptional  measures that prevent  the single market  from  functioning  normally must 
be removed as soon as they are no longer indispensable. The current crisis has shown 
the need for crisis preparedness plans in the health sector, which include in particular 
improved  purchasing  strategies,  diversified  supply  chains  and  strategic  reserves  of 
essential  supplies.  They  are  key  elements  for  developing  broader  crisis  preparedness 
plans. 
The  Union  legislator  has  already  amended  the  relevant  legislative  frameworks7  to 
allow  Member  States  to  mobilise  all  unused  resources  from  the  European  Structural 
and  Investment  Funds  so  they  can  address  the  exceptional  effects  of  the  COVID-19 
pandemic. Those amendments will provide additional flexibility, as well as simplified 
and streamlined procedures. To alleviate cash flow pressures, Member States can also 
benefit  from  a  100%  co-financing  rate  from  the  Union  budget  in  the  2020-2021 
accounting  year. Croatia is encouraged to make full use of those possibilities to help 
the individuals and sectors most affected by the challenges. 

The  socio-economic  consequences  of  the  pandemic  are  likely  to  be  sizeable  and 
unevenly  distributed  across  Croatian  regions  due  to  different  specialisation  patterns. 
The  coastal  regions  and  the  islands  which  markedly  rely  on  tourism  will  be 
particularly  affected.  The  current  situation  therefore  calls  for  targeted  policy 
responses. 

(10)  On  30  April  2020,  Croatia  submitted  its  2020  National  Reform  Programme  and  its 
2020 Convergence Programme. In order to take account of their interlinkages, the two 
programmes have been assessed at the same time. 

(11)  Croatia is currently in the preventive arm of the Stability and Growth Pact and subject 

to the debt rule. 

(12) 

(13) 

In  its  2020  Convergence  Programme,  the  government  plans  the  headline  balance  to 
deteriorate  from  a  surplus  of  0,4%  of  GDP  in  2019  to  a  deficit  of  6,8%  of  GDP  in 
2020 and improve to a deficit of 2,4% of GDP in 2021. After decreasing to 73,2% of 
GDP  in  2019,  the  general  government  debt-to-GDP  ratio  is  expected  to  increase  to 
86,7% in 2020 according to the 2020 Convergence Programme. The macroeconomic 
and fiscal outlook are affected by high uncertainty related to the COVID-19 pandemic.  

In response to the COVID-19 pandemic, and as part of a coordinated Union approach, 
Croatia has adopted budgetary measures to increase the capacity of its health system, 
contain the pandemic, and provide relief to those individuals and businesses that have 
been  particularly  affected.  According  to  the  2020  Convergence  Programme,  those 
budgetary measures amount to 2,8% of GDP. The two main measures are the subsidy 
paid out to businesses for retaining employees and tax exemptions granted to hardest-

7 
Regulation (EU) 2020/460 of the European Parliament and of the Council of 30 March 2020 amending 
Regulations  (EU)  No  1301/2013,  (EU)  No  1303/2013  and  (EU)  No  508/2014  as  regards  specific  measures  to 
mobilise  investments  in  the  healthcare  systems  of  Member  States  and  in  other  sectors  of  their  economies  in 
response to the COVID-19 outbreak (Coronavirus Response Investment Initiative) (OJ L 99, 31.3.2020, p. 5) and 
Regulation  (EU)  2020/558  of  the  European  Parliament  and  of  the  Council  of  23  April  2020  amending 
Regulations  (EU)  No  1301/2013  and  (EU)  No  1303/2013 as  regards  specific  measures  to  provide  exceptional 
flexibility for the use of the European Structural and Investments Funds in response to the COVID-19 outbreak 
(OJ L 130, 24.4.2020, p. 1). 

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hit  businesses.  In  addition,  Croatia  has  adopted  measures  that,  while  not  having  a 
direct  budgetary  impact,  will  contribute  to  support  liquidity  to  businesses,  which  the 
2020 Convergence Programme estimates at 1,3% of GDP. Those measures include tax 
deferrals for personal and corporate income taxes and social contributions. Overall, the 
measures taken by Croatia are in line with  the  guidelines set  out  in the  Commission 
Communication on a coordinated economic response to the COVID-19 outbreak. The 
full  implementation  of  those  measures,  followed  by  a  refocusing  of  fiscal  policies 
towards  achieving  prudent  medium-term  fiscal  positions  when  economic  conditions 
allow, will contribute to preserving fiscal sustainability in the medium term. 

(14)  Based  on  the  Commission  2020  spring  forecast  under  unchanged  policies,  Croatia’s 
general government balance is forecast at -7,1% of GDP in 2020 and -2,2% in 2021. 
The  general  government  debt  ratio  is  projected  to  reach  88,6%  of  GDP  in  2020  and 
moderate to 83,4% in 2021. 

(15)  On 20 May 2020, the Commission issued a report prepared in accordance with Article 
126(3)  of  the  Treaty  due  to  Croatia’s  planned  breach  of  the  3%  of  GDP  deficit 
threshold in 2020. Overall, the analysis suggests that the deficit criterion as defined in 
the Treaty and in Regulation (EC) No 1467/1997 is  not fulfilled.   

(16) 

In  response  to  the  pandemic,  Croatia  swiftly  undertook  far-reaching  measures  to 
protect its citizens and contain the spread of the virus. The pandemic (and associated 
containment  measures)  led  to  serious  disruption  to  business  activity,  with  resulting 
negative effects on the labour market. Real GDP is estimated to drop by 9,1% in 2020 
and recover by 7,5% in 2021, while the unemployment rate is forecast to increase to 
10,2% in 2020 and improve to 7,4% in 2021, according to the Commission forecast. 
The tourism sector, which represents a very significant share of the Croatian economy, 
will be heavily impacted. At the same time, Croatia also had to deal with the effects of 
a major earthquake in Zagreb on 22 March 2020. To mitigate the negative impact on 
the economy, Croatia undertook a set of ambitious measures including wage support 
measures, exemptions from and deferrals of taxes and social contributions, support for 
SMEs, additional guarantees for export insurance and moratoria on loan instalments, 
and specific measures for tourism and other highly affected sectors.  

(17)  The  COVID-19  outbreak  is  a  test  of  the  resilience  of  the  Croatian  health  system. 
Although access to health care is generally good in Croatia, unmet medical needs due 
to  distance  are  amongst  the  highest  in  the  Union.  A  more  balanced  geographical 
distribution  of  health  workers  and  facilities  would  allow  easier  access  to  health 
services. The division of responsibility for health care facilities in Croatia between the 
central government and county authorities leaves scope for improvement. The central 
government  has  to  cover  the  debts  of  hospitals  owned  by  counties  but  has  limited 
means of influencing how they are managed. Closer cooperation between the central 
government and counties is crucial to ensuring the supply of critical medical products 
and for being able to take steps to limit the spread of COVID-19. Use of eHealth tools 
enables  direct  contacts  between  health  workers  and  patients  to  be  reduced,  also 
lowering  the  risk  of  infections.  Use  of  e-prescriptions  is  widespread,  but  a  very  low 
proportion of referrals and health records is digital. 

(18)  Due  to  a  slowdown  in  economic  activity,  employers  have  difficulty  paying  wages, 
which is expected to result in increased unemployment and poverty levels, with even 
more  pronounced  territorial  disparities.  Traditionally,  participation  in  active  labour 
market policy measures has been very low, but under the current circumstances such 
programmes  are  gaining more prominence.  In order to  provide support to employers 

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and  minimize  the  number  of  dismissals,  such  measures,  but  also  other  time-bound 
support  schemes,  in  particular  short-time  work  schemes,  should  be  enhanced.  In  the 
short  term,  they  preserve  jobs,  but  in  the  medium  term  too,  there  is  scope  for 
improving  the  anticipation  of  labour  market  needs  during  the  recovery  phase.  The 
Croatian public employment service should step up its efforts to support the workforce 
in  developing  appropriate  skills  (e.g.  digital  skills),  develop  outreach  strategies 
towards the inactive population and fight undeclared work. The unemployment benefit 
does  not  provide  a  safety  net  for  dismissed  workers,  as  both  the  coverage  and 
adequacy are low. The poverty reduction capacity of the minimum income benefit is 
also  evaluated  as  weak,  in  a  context  of  high  rates  of  poverty  and  social  exclusion, 
territorial disparities and risk factors related to age, gender and disability. 

(19)  The reliability of internet  connectivity poses concerns. Households in  Croatia do not 
have widespread high-speed internet access at home. About 70% of households have 
fixed broadband take-up, and only 6% have at least 100Mbps fixed broadband take-up. 
Especially  in  rural  areas,  this  might  prevent  telework  and  distance  learning, 
particularly amongst vulnerable groups, such as students from disadvantaged families 
or those with disabilities. These groups risk being excluded from the sudden shift to a 
more  digitalised  society.  Alternative  working  arrangements  employing  digital 
technology  should  be  stepped  up,  in  close  cooperation  with  social  partners,  as  the 
share of workers who telework (6 to 7%) stands at half the EU average.  

(20)  Labour  shortages  have  continually  affected  some  sectors  of  the  economy,  mainly 
because of skills gaps. Promoting the acquisition of adequate skills, including digital 
skills, during initial education and training and later via re- and up-skilling could raise 
productivity and close skills gaps. The quality and inclusiveness of the education and 
training system need to  be improved at  all levels, and the curricular reform  needs to 
continue.  The  introduction  of  digital  education  has  already  proven  its  value  in  this 
crisis;  further  development  of  infrastructure  and  material  for  digital  education  and 
training and of the digital skills of teachers, pupils and adults are needed. 

(21)  Croatia  should  support  the  continuous  flow  of  credit  and  other  financing,  including 
non-bank  financing,  to  viable  borrowers  that  are  negatively  affected  by  the  crisis. 
Croatia has adopted a number of stimulus and support schemes for small and medium-
sized  enterprises  (SMEs).  Efforts  should  continue  to  provide  swift  and  continued 
liquidity  support  to  businesses  through  loans  and  guarantees,  in  particular  state 
guarantees,  with  a  focus  on  SMEs,  to  overcome  the  crisis  and  smooth  the  path  to 
recovery. Businesses in Croatia rely heavily on bank loans and cash flow to meet their 
funding  needs.  The  banking  system  should  be  supported  with  guarantees  in  order  to 
open  up  for  new  SME  financing  and  improve  access  to  finance.  In  the  process  of 
designing and implementing these measures the resilience of the banking sector needs 
to be taken into account. Exempting from and allowing deferred payments of taxes and 
social contributions has also helped improve businesses’ liquidity.  

(22)  There  has  been  renewed  effort  to  reduce  the  administrative  burden  and  regulatory 
restrictions. However, the operation of businesses in general continues to be held back 
by the still high regulatory and administrative burden, for example as regards permits, 
reporting  requirements  and  tax  procedures.  Identification  of  the  administrative  and 
financial  burdens  is  progressing  through  consultations  with  stakeholders  and  via  a 
dedicated website, and measures to reduce the most burdensome obligations are being 
introduced.  Ensuring  smooth  access  to  and  exercise  of  professions,  through 
streamlining their regulatory frameworks and related administrative procedures, is also 
of  crucial  importance,  especially  for  SMEs  and  micro  enterprises,  including  sole 

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practitioners.  A  review  of  parafiscal  charges  has  been  carried  out  and  a  first  action 
plan was adopted by the government in May 2020.  

(23)  To  foster  the  economic  recovery,  it  will  be  important  to  front-load  mature  public 
investment  projects  and  promote  private  investment,  including  through  relevant 
reforms. Croatia should promote investment in growth-enhancing sectors, contributing 
to the green and digital transitions.  A modern and robust digital infrastructure is key 
for  the  digital  transformation  of  the  public  administration  and  businesses.  In  the 
context of the digital transition, investments in very high-capacity networks, including 
5G,  are  a  pre-requisite.  Investment  should  support  Croatia’s  decarbonisation  and 
energy transition targets  outlined in the Croatia’s National Energy and Climate Plan. 
There is particular scope and opportunity for Croatia to invest in sustainable urban and 
railway  transport,  energy  efficiency,  renewable  sources  of  energy  and  environmental 
infrastructure.  In  addition,  as  regards  water  and  waste  management,  Croatia 
considerably  lags  behind  the  EU  average  and  investment  is  necessary  to  sustain 
Croatia’s  economic  development.  The  programming  of  the  Just  Transition  Fund  for 
the period 2021-2027 could help Croatia to address some of the challenges posed by 
the transition to a climate neutral economy, in particular in the territories covered by 
Annex D to the country report. This would allow Croatia to make the best use of that 
fund.   

(24)  The  efficiency  of  the  public  administration  in  Croatia  ranks  below  the  EU  average. 
Low capacity to design and implement policies and projects hampers effectiveness and 
speed,  as  has  become  apparent  during  the  crisis  in  the  implementation  of  Structural 
and Investment Funds, which for Croatia present a major opportunity to alleviate the 
consequences  of  the  crisis  and  support  the  recovery  of  the  economy.  The 
implementation  of  the  new  strategic  planning  system,  together  with  the  announced 
National Development Strategy, is not progressing. Moreover, there is high territorial 
fragmentation of the public administration  and an imbalance between responsibilities 
and  resources  at  local  level.  This  contributes  to  uneven  quality  of  public  services 
provided across the country and raises administrative costs. 

(25)  Substantial backlogs and lengthy proceedings in civil and commercial courts continue 
to  affect  the  business  environment  and  effective  resolution  of  insolvencies,  while 
challenges  for  the  quality  and  efficiency  of  criminal  justice  hamper  the  fight  against 
economic  and  financial  offences.  Progress  was  achieved  in  resolving  the  oldest 
pending  court  cases  and  in  using  electronic  communication  in  courts,  but  room  for 
improvement remains. 

to  address  medium- 

(26)  While the present recommendations focus on tackling the socio-economic impacts of 
the  pandemic  and  facilitating  the  economic  recovery,  the  2019  country-specific 
recommendations adopted by the Council on 9 July 2019 also covered reforms that are 
essential 
structural  challenges.  Those 
recommendations remain pertinent and will continue to be monitored throughout next 
year’s  European  Semester  annual  cycle.  That  also  applies  to  recommendations 
regarding investment-related economic policies. The latter recommendations should be 
taken  into  account  for  the  strategic  programming  of  cohesion  policy  funding  post-
2020, including for mitigating measures and exit strategies with regard to the current 
crisis. 

long-term 

to 

(27)  Croatia’s financial sector is well capitalised and profitable, while asset quality in the 
banking sector has improved over the past few years. However, financial institutions 
are likely to face some stress given their exposures to sectors that are most vulnerable 

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to  the  COVID-19  outbreak.  Measures  have  been  introduced  to  alleviate  the  negative 
impact of the containment measures on businesses. It is crucial that these measures are 
temporary,  strictly  linked  to  the  outbreak  and  adequate  in  helping  businesses  facing 
financial  difficulties  return  to  viability.  Such  an  approach  will  support  businesses 
without undermining the progress that Croatia has made in improving the stability of 
its financial sector. 

(28)  Continuing efforts to strengthen the framework to prevent and sanction corruption are 
key  to  ensuring  recovery  in  the  aftermath  of  the  COVID-19  crisis  and  achieving  an 
efficient,  accountable  and  transparent  allocation  and  distribution  of  funds  and 
resources.  Despite  the  partial  implementation  of  several  Action  Plans,  issues  of 
corruption  and conflicts of interest  remain  widespread for businesses.  Further efforts 
to  strengthen the framework to  prevent  and sanction corruption  are needed to  ensure 
the transparent and efficient use of public funds. More effective tools to  prevent and 
sanction  corruption  are  needed,  particularly  at  the  local  level.  The  need  to  enhance 
oversight  mechanisms  for  local  officials  and  appointees  to  local  public  companies 
remains, as does the need to ensure the Conflicts of Interest Commission can fulfil its 
essential preventive role. Initiatives to increase transparency, such as the publication of 
assets of judges and prosecutors, are expected to start in 2020. 

(29)  The  European  Semester  provides  the  framework  for  continuous  economic  and 
employment  policy  coordination  in  the  Union,  which  can  contribute  to  a  sustainable 
economy.  Member  States  have  taken  stock  of  progress  regarding United  Nations’ 
Sustainable  Development  Goals  (SDGs)  implementation  in  their  2020  National 
Reform  Programmes.  By  ensuring  the  full  implementation  of  the  recommendations 
below, Croatia  will  contribute  to  the  progress  towards  the SDGs and  to  the  common 
effort of ensuring competitive sustainability in the Union.  

(30) 

(31) 

(32) 

In  the  context  of  the  2020  European  Semester,  the  Commission  has  carried  out  a 
comprehensive  analysis  of  Croatia’s  economic  policy  and  published  it  in  the  2020 
country  report.  It  has  also  assessed  the  2020  Convergence  Programme  and  the  2020 
National  Reform  Programme  and  the  follow-up  given  to  the  recommendations 
addressed  to  Croatia  in  previous  years.  It  has  taken  into  account  not  only  their 
relevance  for  sustainable  fiscal  and  socio-economic  policy  in  Croatia,  but  also  their 
compliance with Union rules and guidance, given the need to strengthen the Union’s 
overall  economic  governance  by  providing  Union-level  input  into  future  national 
decisions.  

In  the  light  of  that  assessment,  the  Council  has  examined  the  2020  Convergence 
Programme and its opinion8 is reflected in particular in recommendation (1) below.  

In the light of the Commission’s in-depth review and this assessment, the Council has 
examined  the  2020  National  Reform  Programme  and  the  2020  Convergence 
Programme.  The  present  recommendations  take  into  account  the  need  to  tackle  the 
pandemic  and  facilitate  the  economic  recovery  as  a  first  necessary  step  to  permit  an 
adjustment  of  imbalances.  Recommendations  directly  addressing  the  macroeconomic 
imbalances  identified  by  the  Commission  under  Article  6  of  Regulation  (EU)  No 
1176/2011 are reflected in recommendations (1), (2), (3) and (4), 

HEREBY RECOMMENDS that Croatia take action in 2020 and 2021 to: 

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In  line  with  the  general  escape  clause,  take  all  necessary  measures  to  effectively 
address the pandemic, sustain the economy and support the ensuing recovery. When 

Under Article 9(2) of Council Regulation (EC) No 1466/97. 

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economic  conditions  allow,  pursue  fiscal  policies  aimed  at  achieving  prudent 
medium-term  fiscal  positions  and  ensuring  debt  sustainability,  while  enhancing 
investment.  Enhance  the  resilience  of  the  health  system.  Promote  balanced 
geographical distribution of health workers and facilities, closer cooperation between 
all levels of administration and investments in e-health.  

Strengthen  labour  market  measures  and  institutions  and  improve  the  adequacy  of 
unemployment  benefits  and  minimum  income  schemes.  Increase  access  to  digital 
infrastructure and services. Promote the acquisition of skills.  

Maintain  measures  to  provide  liquidity  to  small  and  medium-sized  enterprises  and 
the  self-employed.  Further  reduce  parafiscal  charges  and  restrictions  in  goods  and 
services  market  regulation.  Front-load  mature  public  investment  projects  and 
promote private investment to foster the economic recovery. Focus investment on the 
green and digital transition, in particular on environmental infrastructure, sustainable 
urban and rail transport, clean and efficient production and use of energy and high-
speed broadband.  

Reinforce  the  capacity  and  efficiency  of  the  public  administration  to  design  and 
implement  public  projects  and  policies  at  central  and  local  levels.  Improve  the 
efficiency of the judicial system. 

2. 

3. 

4. 

Done at Brussels, 

For the Council 
The President 

EN 

8 

  EN