Croatia plans to join ERM II in 2020

Croatia plans to join ERM II in 2020
European Commission Vice-President Dialogue Valdis Dombrovskis says the Commission supports the EU's newest member Croatia on its path to euro adoption. / vlada.hr
By bne IntelliNews October 30, 2018

The Croatian government has announced plans to join the Exchange Rate Mechanism (ERM II) in 2020 as a step of joining the Eurozone, European Commission Vice-President for the Euro and Social Dialogue Valdis Dombrovskis said.

To join the Eurozone, countries should participate in the ERM II for at least two years without strong deviations from the ERM II central rate. Former Croatian economy minister Martina Dalic said in May Croatia is likely to introduce the euro as its official currency in five to seven years.

Dombrovskis  said the Commission supports Croatia on its journey to the euro area, not just politically, but also through a structural reform programme, the Croatian government said on its website.

The EC representative welcomed the reforms which have been launched in Croatia, including the pension and education reforms, the strengthening of the financial sector, and efforts to reduce non-performing loans.

However, he also pointed to the macroeconomic imbalances which still exist in Croatia.

Related Articles

EBRD extends €75mn risk-sharing facility to Croatian bank PBZ

The European Bank for Reconstruction and Development (EBRD) has allocated a €75mn for risk-sharing facility to Privredna banka Zagreb (PBZ), a part of the Intesa Sanpaolo Group, as part of a new ... more

Erste's Croatian subsidiary boosts net profit by 55% in 2023

Croatia's Erste Bank, a subsidiary of Austria's Erste Group, announced a consolidated net profit of €241mn for 2023, marking a 55% increase from 2022's figure of €156mn.  ... ... more

Zagrebacka Bank hits €509mn record profit in 2023

The Zagrebacka Bank Group announced a record profit of €509mn in 2023, marking an increase of €261mn (105.2%) year on year, the Bank said in its press release on ... more

Dismiss