Croatia adopts the Euro on January 1, 2023

Croatia Euro

Croatia has been adopted as a member of the Eurozone by the Council of the European Union, and the adoption of the euro will take effect on 1 January 2023. Croatia will abandon its national currency, the kuna, and the exchange rate will be set at 7.5345 kuna to 1 euro. While this marks a turning point for the country, it is not a revolution as Croatia has used the euro and the Deutsche Mark as its base currencies since the kuna was created in 1994, and the Croatian central bank has maintained a stable exchange rate between the two currencies.

Croatia's adoption of the euro comes at a time when the European single currency is in turbulence. The euro has weakened in recent months due to the war in Ukraine and has reached parity with the dollar for the first time since December 2002. This may pose challenges for Croatia as a new member of the eurozone, but it does not call into question its decision to join the single currency.

The visuals

Croatia's coins  adopting the euro in 2023 have designs that reflect the country's culture and history. The 2 euro coin features a map of Croatia with a checkerboard background and a quote from a coin by Ivan Gundulić.

The 1 euro coin features a marten, which is a small mammal that lends its name to the country's former currency, the kuna. The 50 cent, 20 cent and 10 cent coins all feature a portrait of Nikola Tesla, an inventor and engineer known for his work on alternating current technology. The 5 cent, 2 cent and 1 cent coins feature the letters "HR" in angular Glagolitic script, which is the oldest known Slavic alphabet, used in Croatia until the 19th century.

 Here is the first Brilliant Universal BU set from Croatia 2023, bringing together the 8 coins of the year.

The benefits of this transition 

Croatia, as a relatively undeveloped country heavily dependent on tourism, will gain additional economic and financial security by adopting the euro. Membership of the European Union's single currency will allow Croatia to benefit from the possibility of buying back sovereign debt in the event of economic stress, thanks to the ECB.

By adopting the euro, Croatia is strengthening its economic stability and position in international markets. It should also improve the competitiveness of its economy and encourage foreign investment. However, it is important to note that adopting the euro may entail costs for businesses and individuals who must adapt their financial systems, and it may also result in a loss of purchasing power for some people.

Croatia has therefore joined the Schengen Area on 1 January 2023. This means that Croatian citizens can travel freely within this area of ​​over 400 million people, without being subject to internal border controls. This entry into the Schengen Area is another step towards Croatia's closer integration into the European Union, following its accession in 2013 and adoption of the euro in 2023. This gives Croatian citizens easier access to other Schengen countries for travel, business and study, as well as better cooperation in security and justice.

 The criteria for joining the Eurozone

To join the eurozone, a country must first be a member of the European Union. Then, it must meet the economic convergence criteria provided for in the treaty, such as:

• inflation should be close to that of the eurozone countries
• the budget balance and public debt must be stable and sustainable
• the exchange rate must be stable
• long-term interest rates should be close to those of eurozone countries

It is important to note that these criteria must be met in a sustainable manner, and not just at a given point in time. Furthermore, national legislation must be compatible with the EU Treaties and the Statutes of the European System of Central Banks and the ECB.