There will be no euro zone pass for Croatia. While Zagreb can launch preparations for minting single coins, the European Commission stresses that the Croatian government’s ambitious timetable does not mean a facilitated procedure for the country.
This entry “will only be possible if Croatia fulfills all the convergence criteria“, repeats the Vice-President of the Commission Valdis Dombrovskis. The Croatian economy is mainly based on tourism. Entering the single currency would be particularly beneficial for the country. A recent study by the Croatian National Bank also points out that support for the euro has gone from 41% to 45% in one year.
But for this Zagreb must meet four criteria:
- control inflation
- the stability of public finances
- anchor the national currency to the euro for two years
- meet strict long-term interest rate targets
The possible arrival of this newcomer will not upset the equilibrium of the euro zone. Croatia’s economic weight remains modest within the EU. On the other hand “politically it is more important because it shows that the euro remains attractive. Countries that want to join this zone can do so even if the conditions are more stringent“, explains Daniel Gros of the Center for European Policy Studies. Croatia wants to say goodbye to the kuna to make way for the euro on January 1, 2023
Reference-feedproxy.google.com