CEM REPORT | Croatia has gotten approval to adopt Euro as its official currency.
The European Union (EU) finance ministers on Tuesday gave the country the final approval to adopt the single currency from January 1, 2023.
The EU ministers have set euro at 7.53450 Croatian Kuna.
The EU had set strict conditions for Croatia adoption of the European single currency which included keeping inflation in the same range as its EU peers, as well as embracing sound public spending.
Croatia expressed willingness to adopt the single currency upon joining the EU in 2013, and the decision to allow its entry comes as the Euro has just celebrated its 20th anniversary.
Croatia because the latest addition to join Italy, France, and Germany, and 16 other countries to adopt the currency since 2002.
Bulgaria has also stated its willingness to adopt it as of January 1, 2024, making it the next country in line to join the Euro adoption.
However, eurozone members are worried about the long-term stability of the Bulgarian economy and Sofia has yet to gain the same political support as Croatia.
Czech Republic Finance Minister, Zbynek Stanjura, congratulating Croatia said:
“I would like to congratulate my counterpart, Zdravko Maric, and the whole of Croatia for becoming the 20th country to join the euro area.”
Ms Christine Lagarde, Head, European Central Bank (ECB) at a signing ceremony in Brussels said:
“This is a time for celebration… and an act of conviction,”
“The whole of Croatia decided and was convinced of the value of joining the euro and the euro area.”