Recommendation to the Council on the adoption by Croatia of the euro on 1 January 2023

Summary:

Recommendation adopted by the members of the Council of the European Union whose currency is the Euro on 17 June 2022, concerning the adoption by Croatia of the Euro on 1 January 2023.

Further information:

This recommendation proposes that Croatia should introduce the Euro currency on 1 January 2023. This is the first step in a process by which the Council of the European Union adopts legal act that enable the country to become a member of the Euro area.

Croatia's Kuna joined the Exchange Rate Mechanism (ERM II) in July 2020. It is necessary to be part of this mechanism without severe tensions and without devaluing its central rate against the Euro for at least two years before it can qualify to adopt the Euro. On 1 June 2022, the European Commission assessed that Croatia fulfilled all the criteria for joining the Eurozone and proposed to the Council that Croatia adopt the common currency in January 2023. The European Central Bank also published an assessment on the same day.

The Recommendation was adopted by the Eurogroup on 16 June 2022 and endorsed by the Council of the European Union on 17 June.

Official

European Commission: Croatia and the euro https://ec.europa.eu/info/business-economy-euro/euro-area/euro/eu-countries-and-euro/croatia-and-euro_en

Croatian National Bank: Strategy for the Adoption of the Euro in the Republic of Croatia (April 2018) https://euro.hnb.hr/documents/2070751/2104255/e-strategy-for-the-adoption-of-the-euroin-Cro.pdf/9e02b33f-665a-46a9-a1b6-ac63f9af3c95

Croatian National Bank: Press Release, 04/05/2022: CNB Council: Design selected for the national side of the Republic of Croatia on 1 euro coin https://www.hnb.hr/en/-/cnb-council-design-selected-for-the-national-side-of-the-republic-of-croatia-on-1-euro-coin

Council of the European Union: Press Release, 16/06/2022: Euro area member states recommend that Croatia become the 20th member of the euro area https://www.consilium.europa.eu/en/press/press-releases/2022/06/16/eurogroup-endorses-welcoming-croatia-as-20th-member-country-of-the-euro-area/

EEP EP Group: Newsroom, 20/06/2022: EPP wants Croatia to become 20th country to adopt Euro https://www.eppgroup.eu/newsroom/news/epp-wants-croatia-to-become-20th-country-to-adopt-euro

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News

The Guardian, 09/02/2022: Croatia scraps euro coin design over plagiarism controversy https://www.theguardian.com/world/2022/feb/09/croatia-scraps-euro-coin-design-over-plagiarism-controversy

EurActiv, 06/05/2022: Croatia readies euro notes, price controls ahead of joining eurozone https://www.euractiv.com/section/politics/short_news/croatia-readies-euro-notes-price-controls-ahead-of-joining-eurozone/

RTÉ News, 13/05/2022: Croatia to introduce euro from January 2023 https://www.rte.ie/news/business/2022/0513/1297867-croatia-to-introduce-euro-from-january-2023/

Kathimerini, 13/05/2022: Croatia passes law paving way for euro currency introduction https://www.ekathimerini.com/news/1184303/croatia-passes-law-paving-way-for-euro-currency-introduction/

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Commentary and Analysis

Atlantic Council: Blog, 19/06/2022: Croatia’s remarkable national journey is a source of hope for Ukraine https://www.atlanticcouncil.org/blogs/ukrainealert/croatias-remarkable-national-journey-is-a-source-of-hope-for-ukraine/

Bruegel: Blog, 22/06/2022: Discretion lets Croatia in but leaves Bulgaria out of the euro area in 2023 https://www.bruegel.org/2022/06/discretion-lets-croatia-in-but-leaves-bulgaria-out-of-the-euro-area-in-2023/

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ESO Records

Croatian bid to join the Exchange Rate Mechanism (ERM II) and Banking Union https://www.europeansources.info/record/croatias-bid-to-join-the-exchange-rate-mechanism-banking-union/

Council Decision on the adoption by Croatia of the euro on 1 January 2023 https://www.europeansources.info/record/proposal-for-a-council-decision-on-the-adoption-by-croatia-of-the-euro-on-1-january-2023/

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