Croatian PM says Croatia ready to join eurozone in Jan '23

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Photo by esfera/Shuttestock.com

Croatia believes that it would be ready to join the eurozone in January 2023, Prime Minister Andrej Plenković said last week.

"Regarding the time which Croatia will spend in ERMII, we are convinced that during its participation in the mechanism, we will maintain the stability of the exchange rate and will be ready to join the eurozone on January 1, 2023," Plenković said cited by media reports. In July 2020, Croatia was admitted into the European Exchange Rate Mechanism (ERM II), a preparatory phase for euro adoption.

ERM II members have to meet the nominal convergence criteria set by the Maastricht Treaty, implement reform measures and prepare a national changeover plan. Plenković noted that salaries in countries that have already introduced the euro rose much higher than prices. In Slovenia, which joined the eurozone in 2007, salaries have increased by 48% and prices by 26%.

The government expects an economic recovery of at least 5% this year and a real GDP growth of 6.6 % next year, the prime minister also said. Following a significant increase of budget deficit to 7.4% of GDP in 2020, the government expects to cut it to 3.8% this year, 2.6% next year and 1.9% in 2023, he added.

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