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Euro on its way! Euro on its way! Canva

Croatia is ready for the introduction of the Euro on January 1, 2023 – reports European Commission

Written by  Jun 01, 2022

"Croatia is ready for the introduction of the Euro on January 1, 2023," the European Commission concluded in its latest published convergence report, which will be presented at a press conference tomorrow in Zagreb by Valdis Dombrovskis, executive vice president of the Economy Commission. The European Commission's assessment is complementary to the European Central Bank's (ECB) Convergence Report, also released today, reports N1.

Speaking to Croatian media ahead of his arrival in Zagreb, Dombrovskis emphasized that this is a historic achievement for Croatia, a decade after its entry into the European Union. Dombrovskis believes that Croatian citizens do not have to fear the euro, and the Croatian government has pledged to ensure that the conversion is fair in terms of prices for citizens. Although news of joining the Eurozone comes at a time of crisis and high inflation, Dombrovskis responded that the euro will help maintain price stability. Inflation was caused by factors that did not arise from the Eurozone, but from the consequences of the pandemic and the war in Ukraine - high energy prices, disruption of supply chains and rising food prices.

A European Commission report monitoring the progress of Bulgaria, the Czech Republic, Croatia, Hungary, Poland, Romania and Sweden concludes that Croatia has met all four nominal convergence criteria and that its legislation is fully compatible with the basic agreement and the statute of the European Central Bank.

In the light of the European Commission's assessment, taking into account additional factors relevant to economic integration and convergence, including, balance of payments, labour market and financial market integration, the Commission considers that Croatia is fully eligible for the euro. The Commission will take a final decision in the first half of July, following a discussion in the Eurogroup, among the member states of the European Council and the opinions of the European Parliament and the European Central Bank.

After the report was published, European Commission President Ursula von der Leyen said: “Croatia has taken an extraordinary step towards adopting the euro on 1 January. This will strengthen the Croatian economy, bring benefits to citizens, entrepreneurs and society. This will strengthen the euro itself, which is one of the strongest currencies in the world. He is a symbol of strength and unity."