On 1 January 2023, Croatia adopted the euro as its currency and fully joined the Schengen area. This is an important milestone in the history of Croatia, the Eurozone and Schengen, and the entire EU. It follows a period of intense preparation and significant efforts by Croatia to meet all the necessary requirements.
The Commission fully supported Croatia in the process of joining the euro area and the Schengen area. Together with Croatia, 20 EU Member States and 347 million EU citizens will share the EU's single currency. As regards the Schengen area, this is the eighth enlargement and the first after 11 years.
Like us on Facebook and share our post with others. Thank you.
In its 2022 Convergence Report, the Commission concluded that Croatia met the criteria for adopting the euro. This assessment was supported by the European Central Bank's own Convergence Report. In July 2022, EU finance ministers took a formal decision that paved the way for Croatia to adopt the euro.
The euro will bring practical benefits to Croatian citizens and businesses. It will make it easier to travel and live abroad, make markets more transparent and competitive, and facilitate trade. Euro banknotes and coins will also become for all Croatians a tangible symbol of the freedom, convenience and opportunities that the EU provides. Public support for the euro in the euro area remains very strong, with the vast majority of EU citizens believing that the euro is good for the EU as a whole and for their own country.
The Schengen area allows 420 million people to travel freely between member countries without going through border controls. It allows for the development of joint, shared responsibility for controlling the Union's external borders and responsibility for issuing common Schengen visas.
The euro will gradually replace the kuna as Croatia's currency
From Sunday, January 1, 2023, the euro will gradually replace the kuna as Croatia's currency. In accordance with the consistent record of exchange rate stability, the kuna will be exchanged at an exchange rate of 1 euro to 7,53450 Croatian kuna. Both currencies will be used side by side for a period of two weeks. If you pay in Kuna, change will be issued in Euro. This will allow for the gradual withdrawal of the marten from circulation.
Displaying prices in kuna and euro became mandatory on September 5, 2022
Double display of prices in kuna and euro became mandatory on September 5, 2022 and will be valid until December 31, 2023. In order to consumer protection and to dispel their concerns about unjustified price increases during the transition period, the Code of Business Ethics was introduced. This will ensure price stability for goods and services by helping entrepreneurs correctly calculate and display prices. Businesses that sign up to the initiative can display its logo to reassure customers, and will lose this right if they are found to have breached the Code. The Code of Ethics is enforced by the State Inspectorate, which will also monitor the prices of frequently purchased products and services during the transition to the euro.
Commercial banks received banknotes and coins euro in advance from the Croatian National Bank and in turn provided euro cash to shops and other businesses. Kuna banknotes and coins can be exchanged for euro banknotes and coins at the Financial Agency and post offices until June 30, 2023. The exchange is free of charge. The exchange of kuna banknotes and coins in commercial banks is possible until December 31, 2023. It is free of charge for all exchanges made before July 1, 2023, up to the limit of 100 kuna banknotes and 100 kuna coins. Commercial banks may charge a fee for changes from July 1, 2023. The National Central Bank of Croatia will exchange kuna banknotes without time limits and kuna coins until December 31, 2025. This service is free of charge.
70% of ATMs in Croatia will be distributing euro banknotes as early as January 1, 2023, and the rest as soon as possible (within two weeks). To facilitate this process, commercial banks will publish information on the internet about ATMs dispensing euros.
Like us on Facebook and share our post with others. Thank you.
Source: EC
Read and learn more: Many people want to turn a holiday home into a house
