Croatia to start new year with euro, EU visa-free zone entry
ZAGREB, Croatia — More than nine years after Croatia became the European Union’s newest member, the country is on a roll to make the most of its status as the EU member in the Balkans.
Croatia is adopting the EU’s common currency, the euro, and joining the Schengen Area, Europe’s visa-free travel area, on Jan. 1. Officials in the small nation of 4 million people predict the developments will be remembered as one of the country’s biggest achievements since it gained independence during the breakup of Yugoslavia 31 years ago.
Adopting the euro offers economic benefits stemming from deeper financial ties with the currency’s 19 other users and with the European Central Bank. It also means that the 340 million people who live in the current eurozone no longer will need to exchange their euros for Croatian kuna and can enter the country, known for its stunning Adriatic coastline, without stopping at border controls.
“After 10 years of membership (in the EU), we intentionally and deservedly reached the stage where we would become the only country in history to join the Schengen and eurozones on the same day,” Croatian Prime Minister Andrej Plenkovic said at a recent business conference on the upcoming integration milestones.
But not all Croats are excited by the changes, especially the phasing out of their currency. Some are sentimental about the kuna, introduced to secure monetary autonomy after Croatia’s split from the former Yugoslavia and a 1991-95 war.
“The kuna was a symbol of Croatia’s independence. We were all attached to it, so it will be a bit hard to get over its disappearance,” Vladislav Studar, a veteran of the war between the forces of Croatia’s government and those loyal to the Serb-controlled Yugoslav army. “But what can we do? Life goes on.”
Croatia joined the EU in 2013, the last time a new member nation was admitted. To adopt the euro, the country had to fulfill a set of strict economic conditions, including a stable exchange rate, controlled inflation and sound public spending.
After EU finance ministers gave Croatia the green light in July to join the eurozone, the country’s central bank had to make extensive preparations.
“We secured the (euro) banknotes for front-loading and the full volume needed for next year, and we are almost done minting the needed 600 million coins. Around 93% of that number has already been minted,” said Tihomir Mavricek, the executive director of the Croatian National Bank’s cash department.
The kuna and euro will be in dual use for cash payments for only 14 days, but in January, buyers will receive only euros in change.
An aggressive public awareness campaign has accompanied the behindthe-scenes technical work. All Croatian households received instructions about the currency switch.
The comparable cost in euros was added to the prices of products sold in Croatia during the first week of September.