The European Union has given its final approval for Croatia to adopt the euro early next year, when it will become the 20th member of the currency zone, according to Bloomberg.
The bloc’s finance ministers meeting in Brussels backed the move on Tuesday after the Commission recommended that the country of 3.9 million people be allowed to adopt the common currency. The Commission found earlier that the country meets the necessary conditions in matters such as inflation and public debt.
Croatia will join the single currency at a conversion rate of 7.5345 kunas per euro, according to a senior official.
The final “ok” makes Croatia the first new member since Lithuania in 2015.
The move brings Croatia into the core of the EU, making payments easier and cheaper and giving its financial system a safety net in future crises. Croatia also aims to join the Schengen zone, removing barriers to travel across Europe.
Other eastern EU members, including Bulgaria and Romania, are seeking to follow suit. However, some in the region are less keen, having seen the benefits of independent monetary policy since the 2008 global financial crisis.
Source: Capital
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