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.
“Some countries achieved the two goals one after another over a relatively short period of time, but none achieved both on the same day,” he said, adding that the changes “will have a transformative impact on our economy.”
Croatia joined the EU in 2013, the last time the country admitted a new member nation. To adopt the euro, the country had to fulfill a set of strict economic conditions, including having 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.
