this European Commission stated this Wednesday that Croatia would be ready to enter the euro and Joining the eurozone from 1 January 2023, after meeting the criteria for compliance with agreements and financial stability required in the process.
“This Croatia will strengthen its economye greatly benefits citizens, businesses and society. European Commission President Ursula von der Leyen said that Croatia’s adoption of the euro will also strengthen the euro.
The Community Manager noted that Croatia meets one of the following criteria to adopt the euro, including price stability. EU best benchmarks for average inflation levels of 4.9% over the last twelve monthsa budget position that is not overly open, stability in exchange rates and interest rates of around 2.6% in line with the euro area.
Also, for assessing the sustainability of Croatia’s adoption of the euro, criteria such as balance of payments, integration of finance and labor markets, labor costs and additional price indices.
In this sense, Valdis Dombrovskis, the economic vice-president of the European Commission, valued the EU. Croatia’s “commitment”, “work” and “perseverance in its efforts” to fulfill the conditions for the adoption of the euro in January 2023.
The European Commission noted that among the main risks are: Integration of Croatia into the business ecosystem of the euro area, with a particular focus on corruption and regulatory qualityHowever, it has shown that the country will not experience economic imbalances.
This was announced by the Community Manager in the Convergence report, where he evaluated the following. Progress made by candidate countries to join the euro, including Sweden, Bulgaria, the Czech Republic, Hungary, Poland and Romania, as well as seven Member States, Croatia. is determined to legally adopt the single market currency.
inflation in Croatia
The Council will make the final decision on EU integration. Croatian euro in the first half of JulyAfter the relevant debates in the Eurogroup and the Council of Europe, and after both the European Parliament and the European Central Bank have given their views.
Croatia is the only one of the seven candidate Member States to enter the eurozone that meets the criteria for financial stability and the compatibility of national monetary legislation with the regulations of the European Central Bank.
In addition, the Community Executive, Inflation levels in the Balkan country will be in line with those of the eurozone in 2022 and 2023, Despite cautioning that Croatia’s correct integration with the euro will require monitoring the risks of increases in the consumer price index, especially if wages rise in line with productivity.
According to the report by Brussels, Croatia’s deficit fell to 2.9% of Gross Domestic Product (GDP) in 2021 and is projected to fall to 2.3% of GDP in 2022 and 1.8% in 2023.
this public debt is “relatively” high, Although expected to decline, it is close to 80% of GDP in 2021. In addition, the study pointed to a medium-term debt sustainability risk.