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.
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

Croatian court starts bankruptcy proceedings at Uljanik

The commercial court at Pazin has decided to start bankruptcy proceedings at Uljanik Shipyard, its parent company, ... more

Inefficient state-owned companies compromise productivity of Croatian economy, IMF says

Inefficient state-owned enterprises compromise the productivity of the Croatian economy, the International Monetary Fund (IMF) said on May 2, after a team from the fund paid a visit to Zagreb ... more

EIB and Croatia’s HBOR sign deals worth €342.5mn

The European Investment Bank (EIB) and the Croatian Bank for Reconstruction and Development (HBOR) have signed two deals worth €342.5mn, the EIB announced on April 30. The funds will be used for ... more

Dismiss