MEPs approve Croatia's Eurozone entry

Parliament, by 539 votes in favour, 45 votes against and 48 abstentions, adopted the report of Siegfried Mureșan (EPP, RO) stating Croatia fulfils all the criteria for adopting the euro on 1st January 2023.

The report notes that, despite the evaluation of Croatia’s readiness taking place against the backdrop of the COVID-19 pandemic, high inflation, and Russia’s war against Ukraine, Croatia continues to be ready to adopt the euro.

MEPs also state that

Croatia already has a higher level of price convergence with the eurozone compared to other member states on their adoption of the euro.

Nonetheless, Parliament expects sustained efforts from the Croatian government to ensure further price convergence and that the introduction of the euro does not lead to artificial price increases.

Parliament’s opinion will be forwarded to Eurozone member states who are responsible for giving the final clearance for Croatia to adopt the euro.

The process will culminate in the adoption by the Council of the European Union, after consultation with the European Parliament and the European Central Bank, of the three pieces of legislation necessary for the introduction of the euro in Croatia, expected before the end of July. They will also set the exchange rate at which the kuna will be converted into euros on 1 January 2023.

In Croatia, prices will be displayed in both Kuna and euros from 5 September.

The dual display of prices will remain in force until the end of 2023. From the date of the official introduction of the euro, the kuna will be exchanged free of charge at banks, the Croatian Post Office and the state Financial Agency (FINA). Exchange will also be free of charge at the Croatian National Bank (HNB) for an unlimited period.

In July 2020, the European Central Bank (ECB) included Croatia's currency in the ERM-2 exchange rate mechanism, which is considered the "antechamber of the euro area". The euro area, which currently comprises 19 countries, last expanded in 2015, when Lithuania adopted the euro.

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