Croatia’s adoption of the euro: what you need to know

During the year 2022, the convergence report of the European Union determined that Croatia, which is part of the EU, met the criteria for integration into the Schengen area, but also the conditions of adoption of the euro. Since January 1 ^and 2023, Croatia has used the European currency: the euro.

Here are the criteria which made it possible to rule on the Croatian case:

• Having healthy public finances;
• Have a sustainable nature of convergence;
• Maintain a stable exchange rate;
• Know price stability.

From now on, Croats depend directly on the European Central Bank.

As a reminder, all member states of the European Union (such as Hungary, Denmark, etc.) must be in the process of joining the euro. However, there is an exception: Denmark, which has concluded an agreement, included in the Maastricht Treaty. Thus, during the study on the adoption of the euro, several countries were eligible, but only Croatia met all of the European demands.

Entry into the Schengen area and the adoption of the euro confirm the efforts made by Croatia and the Croats in recent years. Financial stability and the increase in GDP contributed to the green light from the European Union. Thus, in addition to the free movement of people and products, Croatia can rely on:

• High borrowing capacity from the central bank: in fact, Croatia will now benefit from collective economic power;
• Increased financial security: the European Union intervenes and helps countries in crisis situations;
• More efficient protection against inflation;
• A rising average standard of living for the entire Croatian population.

On the other hand, the adoption of the single currency faces constraints:

• Meet the demands, objectives and criteria of the European Union;
• A likely increase in costs;
• Decentralized management in Brussels.

Thus, Croatia loses financial autonomy but gains in quality of life, and will be more able to counter the deleterious effects of inflation and the current crisis in the world.

This year, Croatia is therefore connecting to the euro zone. Here is a summary of the key dates to remember:

• In 2012, Croatia validated membership of the European Union by referendum;
• July 1^st 2013: Croatia becomes a member of the European Union;
• From January to June 2020: EU Presidency by Croatia;
• June 2022: convergence report favorable to the integration of Croatia into the Schengen area, and EU agreement to the request for adoption of the euro;
• 1^er January 2023: official start of the new European recruit in the euro zone and the Schengen area.

From now on, you can see Croatia's new euro coins circulating at the post office as in the rest of the country. You will recognize the portrait of Nikola Tesla, Croatian inventor of alternating current, the map of Croatia or even a marten. Indeed, in the Middle Ages, marten skin was used for economic exchanges. Furthermore, the word “marten” is called “kuna” in Croatian (code: HRK), which was the official currency of Croatia until 2023.

Croatia has been impacted by the Covid crisis and inflation. From now on, by fully entering the Schengen area and adopting the single currency, Croatia will be able to gain financial protection and benefit from assistance from the European Central Bank. Furthermore, this complete integration offers a new flow relationship with other Member States. There is also an impact on the political and employment side.

As for residents of Zagreb and throughout Croatia, they can now travel freely, without borders, and pay in all euro zone countries. Croatians no longer need to change, just like travelers visiting the European country. The adoption of the euro in Croatia will therefore increase the visibility and economic development of the country, and residents will benefit from a better standard of living.

At Gold Union, you have access to a wide range of bars, silver coins and investment gold coins. You can thus develop your collection, according to your desires and your budget. Need advice, information on controls, gold prices, euro rates, news, Croatian election results ? Gold Union France advisors are waiting for you in the agency and via the site e-commerce to offer you various services.