Croatia also enters the euro zone, starting January 1, 2023, making it the twentieth country to adopt the single currency.
The European Commission has given its positive opinion as, according to the assessment, "it meets the four nominal convergence criteria and its legislation is fully compatible with the requirements of the Treaty and the Statute of the European System of Central Banks / ECB".
The final decision by Ecofin is expected on 12 July , after the discussions in the Eurogroup and the European Council, and after the opinions of the European Parliament and the ECB. But at this point it seems obvious.
THE PARAMETERS
The Commission considers that Croatia meets the four Maastricht parameters (price stability, sustainability of public finances, exchange rate, long-term interest rates) to enter Economic and Monetary Union and highlights that the Croatian economy is " well integrated "with that of the euro area .
Compliance with the first parameter on prices was the main challenge for Zagreb, explains Brussels, highlighting that the trend of inflation in the country over the last decade has been closely aligned with that of the euro area and, according to EU estimates, will continue to be in 2022 and 2023.
The biggest challenges for the country, the Commission adds, now concern the business environment, including regulatory quality and corruption, on which a "renewed effort" by the authorities is however reported. An effective implementation of the NRP will lead Croatia to address "major macroeconomic and institutional challenges, including low employment and activity rates, skills gaps, a demanding and complex business environment and the quality of education".
GENTILONI
For Paolo Gentiloni, EU Commissioner for the Economy, "today marks a historic step in Croatia's European journey , testifying to the determined efforts of the Croatian authorities to meet the criteria for entry into the euro zone".
"The Croatian people - adds the former Italian premier - can now expect to join the more than 340 million citizens who already use the euro and, in the year in which we celebrated the twentieth anniversary of the birth of the euro as a physical currency, the euro area can expect to welcome its twentieth member ".
(Unioneonline / L)