Croatia Becomes 20th Member of Eurozone

The European Union has given Croatia final approval to join the euro area, becoming the 20th member starting January 2023.

Today, EU finance ministers gave Croatia the final green light to adopt the euro currency on January 1, 2023.

The Finance Minister of the Czech Republic, which holds the rotating presidency of the EU, said he is pleased that his counterpart Zdravko Marić and the whole of Croatia for becoming the 20th country to join the eurozone.

Lithuania was the last EU country to join the Euro area in 2015.

The adoption of the euro in the EU, which includes 27 countries, offers economic advantages that range from deepening financial relations with other members of the bloc to the monetary authority of the European Central Bank.

The new decision means that none of the current 340 million eurozone residents who visit Croatia will no longer need to exchange their money for the Croatian kuna (HRK).

Entry into the eurozone also guarantees political incentives, as the common currency is the most ambitious.

European project for integrating countries, giving them a place at the heart of the EU, and the decision-making of the European bloc.

The euro area was founded in 1999 with the participation of 11 countries, including Germany and France, and the euro has seen seven previous expansions, starting with Greece in 2001.

Joining the euro requires meeting a set of economic conditions, linked to low inflation, sound public finances, exchange rate stability, and lower borrowing costs.

Croatia is a relatively small and poor country, so its accession to the euro will have limited international economic effects. The country has a population of about 4 million, and its per capita GDP reached 13,460 euros ($13,500) last year, less than half the eurozone average.