Croatia intends to become the 20th member of the eurozone in about a year and a half, after the country’s parliament today approved the bill for the introduction of the common currency from January 1, 2023, the state news agency Hina reported.
The law that will replace the Croatian kuna with the euro was passed by a large majority in the 151-member parliament, with 117 votes in favor, 13 against and one abstention.
The amendments tabled by the right-wing parties, arguing that this is not the right time to adopt the euro because it will increase poverty and inflation, were rejected.
Under the new law, prices will appear on both currencies from September. The euro and the kuna will be used in parallel from next year.
The government points out that the introduction of the euro will reduce interest rates, improve the country’s creditworthiness and pave the way for more investment. The main challenge for the government and the central bank is to curb inflation and budget spending so that the country meets the eurozone macroeconomic criteria.
SOURCE: AMPE
Source: Capital
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