Minister Marić: The Government Will Do Everything to Ensure the Introduction of the Euro Does Not Cause Price Increases

The Deputy Prime Minister and Minister of Finance Zdravko Marić stated that everything will be done to ensure that the process of introducing the euro does not serve as an additional trigger for price increases.  

– We will do everything to prevent the process of introducing the euro from being an additional trigger for certain market actors, regardless of inflationary pressures and our efforts to mitigate them – said Marić, adding that there will be an obligation for dual price display starting from September 5.

At the conference organized by the daily newspaper 24sata and 'kvake24', titled 'Croatia in a New Economic Environment' Marić reminded that the Law on the Introduction of the Euro foresees 12 institutions responsible for the implementation of this law, including institutions and regulators such as the Croatian Financial Services Supervisory Agency (Hanfa), the State Inspectorate, the Croatian National Bank, and the Ministry of Finance.

These institutions will monitor everything that happens in more detail. Civil society institutions will also be involved in the process to contribute to reducing the number of 'opportunists' to the minimum possible extent, the minister emphasized.

He also highlighted that a communication campaign is now important, as it is necessary to bring every detail about the introduction of the euro closer to citizens.

Marić also reminded that a few days ago, a convergence report was published in which the European Commission and the European Central Bank stated that Croatia is the only country that has met all the criteria for joining the eurozone. 

The Commission concluded that Croatia is ready to introduce the euro on January 1, 2023, thus becoming the twentieth member state of the euro area.

If Croatia enters the eurozone on the first day of next year, it will be the country with the shortest period in the European Exchange Rate Mechanism (ERM II), Marić pointed out. 

In this mechanism, we will be shorter even than Slovenia, which was in ERM II for 916 days, while in our case it would be 906 days. Lithuania, for example, was in that "waiting room" for ten and a half years.

Marić emphasized that the final formal decision on Croatia’s entry into the euro area is expected to be made on July 12 at the level of the Council of Finance Ministers in Brussels. 

– If everything goes as we expect, following the current steps, and it is formally announced that Croatia will enter the eurozone on January 1 of next year, then the conversion rate will also be defined – said Marić, who does not yet know whether that rate will be the same as when we entered ERM II.

He emphasized, however, that in the vast majority of cases it has remained the same, and if there is a change, it will not be significant.

The Croatian kuna was included in the European Exchange Rate Mechanism (ERM II) in July 2020 at a central parity of 1 euro = 7.53450 kuna. 

Marić emphasized that the path to Schengen is also extremely important for Croatia, which has been our long-standing desire.

He noted that Croatia has fulfilled and continues to fulfill all conditions and criteria for joining Schengen several times, but this also depends on many other factors, including the political will of member states. 

– Croatia has confirmed and proven that it knows how to protect the EU’s borders – concluded the minister, who believes that this will also be achieved.