The city of Petrinja, which according to its geographical position, belongs to the Banija region, Sisak-Moslavina County, was hit by the devastating earthquake measuring 6.4 on the Richter scale on 29 December 2020. On 30 December 2021, The Croatian Government adopted the Program for the social and economic Revitalization of supported regions of the earthquake-stricken Sisak-Moslavina County. The Reconstruction of Banija is one of the two strategic objectives of the programme of social and economic Revitalization of supported areas of Sisak-Moslavina County affected by the earthquake. The organization itself and the Reconstruction results directly influence the programme's first strategic objective: Encouraging the development of the main factors of competitiveness, which include increased productivity and employment and demographic Revitalization. The programme is worth HRK 15.3 billion, and about 90% of the funds will be financed from EU funds; therefore, effective absorption capacity is essential for the future socio-economic development of the region. By analysing the results of current Croatian EU funds absorption and preparation and coordination of the Banija region Reconstruction, as part of the Banija region Revitalization programme and its legislative, institutional, financial, and strategic framework, we are identifying the main factors that affect the Revitalization of the region, mainly funded by the EU funds. This research has theoretical and practical implications, and findings could contribute to a better understanding of the absorption process of EU funds which is essential as the Republic of Croatia is currently facing a very challenging period since it will manage and use at the same time as many as four EU budget packages: a) European Solidarity fund; b) European Structural and Investment Funds (ESI) for the financial period 2014 – 2020.; c) European Funds for the financial period 2021-2027; d) The Republic of Croatia's National recovery and resilience plan 2021-2026 which is financed from The Recovery and Resilience Facility under the temporary NextGenerationEU Instrument.