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.
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