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Final decision on Euro in Croatia expected in June

Written by  Apr 30, 2022

The final decision on the introduction of the Euro in Croatia will be made in June, Jutarnji list wrote on Friday, noting that inflation in Croatia is higher than allowed by the EU Council, but that they will take into account the energy crisis.

When it comes to Croatia's entry into the Eurozone and the adoption of the Euro as the official currency, there is a consensus that this is "very likely."

The final decision will be known in June, when the European Commission and the European Central Bank will publish a report assessing whether the members that have not yet adopted the Euro, including Croatia, meet the convergence criteria.

Unofficial information about this should be known by the end of May. The Croatian National Bank says it expects "positive ratings", taking into account developments in Croatia and the European Union and appropriate benchmarks for price stability, sustainability and stability of public finances, exchange rate stability and long-term interest rate convergence.

Inflation, which will be measured from April last year to April this year, has been singled out as the most problematic criterion so far. According to nominal criteria, it should not exceed the average of the three countries with the lowest inflation rate in 12 months, increased by 1.5 percentage points.

According to the calculations of Marina Tkalec, a senior research associate at the Institute of Economics, in the period from March to March, the lowest inflation was in Greece, Portugal and Malta, averaging 2.1 percent. When it increases by 1.5 points, it means that in Croatia it could amount to a maximum of 3.6 percent, however, in that period, inflation in Croatia was 4.1 percent.