18:46 / 12.07.2022.

Author: Domagoj Ferenčić

ECB and EU Commissioner for trade say Euro will strengthen Croatia

Croatia to join the Eurozone

Croatia to join the Eurozone

Foto: Shutterstock / Shutterstock

In Brussels European Union finance ministers formally approved Croatia's membership of the Eurozone on Tuesday. On January 1st of 2023, Croatia will become the 20th member of the Euro common currency.

Speaking to reporters after the formal signing of the decision, the President of the European Central Bank, Christine Lagarde, and the EU Commissioner for Trade Valdis Dombrovskis, said the move would have a positive impact on the Croatian economy.

"You've done all the hard work, convergence is well established. And I know that it's a wonderful club to be a member of. But it requires commitment, dedication, continued respect of the rules, and I know that we can expect no less from Croatia. Again, congratulations on this occasion," Lagarde said.

"A strong and larger Euro Area reinforces Europe’s influence internationally. On the economic side the importance of this milestone should not be underestimated either. It is helping to widen the foundation for Europe's future economic resilience and strengths. Joining the Euro will bring tangible economic benefits for Croatia. Using the Euro will make it easier and more attractive to invest in your country, it will remove barriers for businesses and remove currency exchange costs, and it will help stabilize interest rates, making it easier and cheaper for companies and people to borrow," added Commissioner Dombrovskis.

Back at home, the Governor of the Croatian National Bank, Boris Vujčić, said that Kuna will still be accepted in Croatia until January 14th of next year, two weeks after the Euro is formally adopted. He also noted that with a fixed exchange rate of 7.53 Kuna per Euro, he doesn’t expect any unusual exchange rate activity: "We don't expect anything meaningful to happen on the exchange market. Now everybody knows the exact exchange rate for conversion, and that is the rate that I announced as the most likely conversion rate as of January 1st. On September 5th the obligation to show all prices in both Kuna and Euro begins. However, whoever wants to, and we know that some have already done so, can begin displaying prices in both currencies right now. But according to the exchange rate that I mentioned."

Source: HRT

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