@vdombrovskis

Happy to be back in Zagreb to announce positive news: Croatia fulfils all criteria to join the euro area as soon as on 1 Jan 2023. This is historic moment both for #Croatia and #euro area. And - YES - this is the right time for Croatia 🇭🇷 to join the euro area. First, euro accession is a rules-based process: Croatia has fullfilled all requirements and is ready for a successful membership in the euro area. True, global geopolitical and economic context is complex. Inflation is at its historic high. Yet, these issues should not be mixed up: The euro is NOT the source of the recent geopolitical problems. Those are caused by Russia’s illegal and barbaric war against Ukraine. The euro is NOT the source of inflation. Inflation stems from the high energy prices, high commodity prices caused by Russia’s aggression and other underlaying factors that have nothing to do with any of currencies. Quite on the contrary: membership in the euro area will bring numerous benefits to Croatian state, economy and people. To start with, historic records show that the euro contributes to the price stability. Households and businesses will benefit from lower financing and transaction costs. In other words over a mid-term, loans will become cheaper. Being part of the euro area will help attract investment to Croatia and will foster higher capital flows, which can give a new boost to Zagreb becoming an important regional capital market. Membership in the euro area and the banking union will further strengthen Croatian financial system, increasing its stability and capacity to finance real economy. Reforms and investment that Croatia has undertaken to prepare for a successful membership in the euro area will increase Croatia’s growth potential, which will consequently lead to more prosperity. Finally, the euro will make Croatia an even more attractive tourism destination!