Croatia steps closer to Introduction of Euro

On Friday, 10 July 2020 Croatia has made further steps towards joining the eurozone by gaining access to the European Exchange Rate Mechanism (ERM II).

The European Central Bank (ECB) has set the base parity for the Croatian kuna versus the euro exchange rate to the amount of HRK 7.5345 per euro with oscillations in a permitted bandwidth of plus or minus 15%.  Upon entry into ERM II, Croatia joins a banking union which upholds a system for joint supervision and crisis management of the banking sector in the euro zone.

Given that a Member State wishing to implement the euro currency must spend at least two years in ERM II prior to introducing a common European currency, Croatia is expected to join the eurozone at the earliest on 1 January 2023.