Croatia meets the conditions for the introduction of the euro in this country on January 1, 2023, the European Commission announced in a convergence report published on Wednesday, which assesses the progress of EU Member States in meeting obligations related to participation in the Economic and Monetary Union.
the European Commission Croatia stated on Wednesday that Croatia was ready to adopt the euro on 1 January 2023. This would increase the number of euro area Member States to twenty.
Croatia in the euro area
“Today Croatia has made a significant step towards adopting the euro, our single currency. Less than a decade after joining the EU, Croatia is now ready to join the euro area on January 1 (2023). This will strengthen the Croatian economy, benefiting its citizens, businesses and the whole society “- assessed the president of the European Commission Ursula von der Leyencommenting on the report’s conclusions.
As she added, the adoption of the euro by Croatia will also strengthen the euro. “Twenty years after the introduction of the first banknotes, the euro has become one of the most powerful currencies in the world, improving the living conditions of millions of citizens throughout the Union. The euro is a symbol of Europe’s strength and unity” – emphasized von der Leyen.
In the light of the Commission’s assessment, and taking into account additional factors relevant to economic integration and convergence, including the evolution of the balance of payments and the integration of product, labor and financial markets, the Commission considers that Croatia is meeting the joining the euro area. Accordingly, it adopted proposals for a Council decision and a Council regulation on the introduction of the euro in Croatia, the convergence report reads.
The report concluded that Croatia fulfills the four nominal convergence criteria (price stability criterion, public finances criterion, exchange rate criterion and long-term convergence criterion interest rates).
The Council will take final decisions on the adoption of the euro by Croatia in the first half of July, following discussions in the Eurogroup and the European Council, and following an opinion by European parliament and the European Central Bank.
Bulgaria in line?
The Bulgarian government last week adopted a national plan to introduce the euro. It provides for the adoption of the euro from 1 January 2024 without a transition period. For the first month – until January 31, 2024, Bulgarian banknotes will be used simultaneously. From the date of the introduction of the euro, all bank accounts, deposits, budget and other accounts will be converted into euro free of charge, therefore there will be no transition period.
Banks and post offices will be able to exchange the levers into euros within 6 months without any additional tax. The central bank will have the right to make exchanges at an unspecified time.
For now, however, Bulgaria does not meet all the conditions for countries applying for the adoption of the common currency.
When the euro was first introduced in 1999 as an accounting currency, the euro area consisted first of 11 and then of 15 EU Member States. Greece joined the euro area in 2001 (just a year before the changeover from national currency to euro), followed by Slovenia in 2007, Cyprus and Malta in 2008, Slovakia in 2009, Estonia in 2011, in 2014 Latvia and in 2015 Lithuania. Today, 19 EU Member States belong to the euro area.
Andorra, Monaco, San Marino and the Vatican City State have adopted the euro as their national currency under special monetary agreements with the EU and may, under certain conditions, issue their own euro coins. However, as these countries are not EU Member States, they do not belong to the euro area.
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