Croatia Poised To Clear Final Hurdle for Euro Currency Entry
TimeDec 29, 2022
The Facts
The Council of the European Union on Tues. formally approved Croatia's accession to the eurozone on Jan. 1, 2023.
This comes as the EU's Economic and Finance Affairs Council enacted three legal acts to allow the country to adopt the euro currency in 2023, including determining the Croatian kuna's conversion rate to around 7.53 per euro.
The Spin
Establishment-critical narrative
Croatia is falling into the euro's trap, and will only realize this after it's too late. By adopting the euro, private debt will increase and the country will become vulnerable to a financial crisis. Zagreb should follow the example of non-eurozone Eastern European nations, which are better off than eurozone Mediterranean countries.
Pro-establishment narrative
Joining the euro area means a lot to Croatia, as this move is expected to attract more EU tourists and foreign investors while granting Zagreb access to ECB liquidity. Though it may come at steep conversion fee costs to local banks, there will be gains in stability to the country's economy.
