The European Council on Friday backed Croatia's entry into the eurozone on 1 January next year.
"Today, at the European Council, Croatia received support from the highest political level for membership in the eurozone. On January 1, we will achieve the Croatian government's strategic goal of joining the eurozone. The benefits of membership will be felt by Croatian citizens and the economy, which will be even more resilient to crises, "Prime Minister Andrej Plenković announced on Twitter.
"The euro is a monetary expression of our common destiny and part of our European dream. Today, Croatia's dream has come true,” announced the President of the European Council Charles Michel.
On Friday, the leaders of the EU member states supported the recommendation on Croatia's entry into the euro area, which is the penultimate step in the process. The last step will be the adoption of three legislative proposals on Croatia's entry, which will take place at a meeting of the Economy and Finance Council on July 12th, and from January 1st next year, the euro will be the official Croatian currency.
Croatia will become the 20th member of the eurozone on 1 January 2023. This is the first enlargement of the euro area since 2015 when Lithuania joined.
Together with Slovenia, Croatia is the country that spent the least in the euro waiting room, the European Exchange Rate Mechanism, two years, while, for example, Lithuania spent 11 and Latvia nine years.
By adopting the euro, Croatia joins the Eurosystem, which consists of the European Central Bank and the central banks of the euro area member states, and the Governor of the Croatian National Bank joins the Governing Council of the European Central Bank. The Minister of Finance participates in Eurogroup meetings, and the Prime Minister in Eurozone summits.
Croatia also automatically becomes a member of the banking union, the banking supervision and resolution system.