Croatia will abandon its national currency, the kuna, which will be exchanged at the rate of 7.5345 kuna for 1 euro, the Council of the European Union announced on Tuesday.
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Soon a twentieth country in the euro zone. The Council of the European Union, which represents the member countries, adopted, on Tuesday July 12, the last legal acts validating Croatia’s transition to the euro on January 1, 2023.
Croatia will abandon its national currency, the kuna, which will be exchanged at the rate of 7.5345 kuna for 1 euro, the Council announced in a press release. The last country to adopt the euro was Lithuania on January 1, 2015.
As soon as it joined the European Union in 2013, Croatia expressed its desire to adopt the single currency. The change will finally take place ten years later. The conditions are drastic for the switch to be validated. As franceinfo explained, inflation must not be too high. Over one year, from April 2021 to April 2022, Croatia is at 4.7%, like France, just below the maximum threshold. Its finances are healthy with a public deficit of less than 3% of GDP. On the other hand, its debt is significant: it represents 80% of GDP.