Contents I. Introduction
By joining the European Union, the Republic of Croatia became a beneficiary of European funds. In the financial period 2014–2020 from the European Structural and Investment funds (ESI) 10.676 billion euros in total will be available for Croatia. Large amounts of available funds need large absorption capacity, of course, if we want to achieve the greatest possible absorption of EU funds. The absorption of EU funds generally depends on three main determinants, such as macroeconomic, financial and administrative, i.e., institutional absorption capacity. Macroeconomic absorption capacity is important for opening up possibilities for a sufficient number of efficient investment opportunities, administrative absorption capacity is a key determinant of the success of implementation of structural policies of the EU and the financial absorption capacity defines the capacity of co-financing of projects. [1]
