Croatia will become a member of the Eurozone on January 1, 2023 and adopt the euro

Croatia will become a member of the Eurozone on January 1, 2023 and adopt the euro

On Tuesday, July 12, the European Council — the highest political body of the European Union — adopted three final acts that pave the way for Croatia to the euro area on the first day of 2023. 

Commenting on the positive decision on Croatia, Zbinek Staniura, Minister of Finance of the Czech Republic, which holds the Presidency of the Council of the EU, said: “I would like to congratulate my colleague Zdravko Marić and all of Croatia for becoming the 20th country to join the Eurozone. Transition to euro — this is not a race, but a responsible political decision. Croatia has successfully met all the required economic criteria and will switch over to the European currency from January 1, 2023.

The conversion rate between the euro and the current currency of Croatia, the kuna, has been set at 7.53450 kunas per euro.

At the moment, the EU member states that are part of the eurozone are Austria, Belgium, Germany, Greece, Ireland, Spain, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, Finland , France and Estonia.

But Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania and Sweden — the last EU countries that have not yet entered the eurozone.

In early July, with 539 votes in favor, 45 against; and 48 abstentions, the EU Parliament accepted Croatia into the euro area. Prior to this, a report was presented stating that Croatia has met all the necessary criteria for participation in the eurozone, despite recent circumstances such as the COVID-19 pandemic, high inflation and events in Eastern Europe. “Reforms carried out by the Croatian government in recent years have strengthened the economy and paved the way for Croatia's accession to the single currency. Obviously, joining the Eurozone is the right decision for the country, its businesses and citizens, as well as for various sectors of its economy, such as tourism, — the report says.

Croatia will soon become part of the Schengen area — The Council of the EU has already asked the European Parliament for its opinion on the draft decision of the Council, which provides for the country's entry into the Schengen area.

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