The annoying money exchange while on vacation in Croatia should end soon. The European Commission can see that the country is ready to introduce the euro. However, the ECB issued another reminder.
According to the final assessment of the European Commission, the popular holiday destination Croatia meets the requirements of introducing the common currency – the euro.
According to the Brussels authorities, on Wednesday the overdue EU decisions may be taken this summer. Croatia plans to replace its national currency, the kuna, the euro next year.
Ursula von der Leyen, president of the European Commission, commented: “Less than a decade after joining the EU, Croatia is now ready to join the euro area on January 1”. This will strengthen the Croatian economy and benefit citizens, businesses and society as a whole. The introduction of the euro in Croatia will also strengthen the euro. The vice-president, Valdis Dombrovskis in charge, spoke of a “historic moment” for the country on the Adriatic, which recently had a population of around 4.1 million.
Croatia has been trying for years to meet the criteria for admission to the Euro Club. On January 1, 2015, Lithuania was the last to be admitted as the 19th member of the group of countries with the single currency.
Under the EU treaties, all member states except Denmark are obliged to join the single currency as soon as they fulfill the requirements. However, several countries are not vigorously pursuing this – for example, Sweden, Poland and Hungary.
In Croatia, tourism in particular expects the introduction of the euro with high expectations. A country with a long Adriatic coast, many picturesque bays and islands, it lives off tourism intensively. At the same time, many people fear that the cost of living may increase sharply as a result of the transition to the common European currency.
In the first half of July, the Council of 27 EU Member States is to take a formal decision on the introduction of the euro in Croatia. However, according to an unequivocal assessment by the European Commission, no difficulties are foreseen. Croatia expects to join the euro area next year, Dombrovskis said on Wednesday.
The European Central Bank (ECB) also positively commented on Wednesday. “The forecast of the European Commission from spring 2022 shows that Croatia is on the right track to continue meeting the requirements of the Stability and Growth Pact,” said the central bank, presenting the so-called Convergence Report. At the same time, however, there was a warning: “To ensure sound public finances and bring the debt ratio down a long-term downward path, Croatia absolutely must implement the financial reforms planned under its economic stimulus program,” it said. (Dpa)