REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The introduction of the euro in Croatia
Date: 2023-06-30
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: Croatia, Economic and Monetary Union, Euro Group (euro area), economic convergence, euro

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 30.6.2023  COM(2023) 341 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS       The introduction of the euro in Croatia  
 
 
REPORT FROM THE COMMISSION 

TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN CENTRAL 

BANK, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND 
THE COMMITTEE OF THE REGIONS 

 The introduction of the euro in Croatia 

Executive summary 

On 1 January 2023, Croatia became the 20th EU Member State to change over to the euro. 61% 
of Croatians perceived the changeover as smooth and efficient. 88% considered they were well 
informed  about  the  single  currency.  A  tailormade  communication  campaign,  which  was  co-
financed  by  the  EU,  contributed  to  timely,  targeted,  and  concise  information  of  citizens, 
businesses and administrations about the practical aspects of the euro changeover. 

The preparations for the cash changeover went according to plan. The Croatian National Bank 
provided corporate customers with euro cash three months ahead of the changeover. Sufficient 
euro  coin  starter  kits  were  provided  to  the  public.  Businesses  could  order  euro  cash  from 
financial institutions well in advance. 

The two-week dual circulation of kuna and euro cash went smoothly. On 1 January, already 
70% of all ATMs were distributing euro banknotes, whilst on 15 January 2023, euro banknotes 
could be withdrawn at any ATM in the country. Kuna cash can still be changed at commercial 
banks until the end of 2023. Thereafter, kuna coins can be exchanged at the Croatian National 
Bank until the end of 2025, whereas the latter changes kuna banknotes without any time limit. 

More than 80% of  all Croatian retailers, supermarkets  and  groceries joined a code of ethics 
ahead of the changeover. The voluntary code aims to ensure stability of prices for goods and 
services by helping all subscribing businesses to correctly  recalculate and display  prices (in 
euro and kuna), without unjustified increases. It is an important, additional instrument for the 
Croatian  market  inspection  authorities  to  carry  out  price  inspections  and  possibly  sanction 
wrongdoers.  

The  possible  impact  of  the  changeover  to  the  euro  on  prices  in  Croatia  is  a  natural  and 
understandable  public  concern  as  with  any  changeover  to  the  euro.  As  this  was  the  first 
changeover to the euro to occur in a high inflation environment, this concern was particularly 
acute and challenging for Croatia to address. It was, therefore, pivotal for a transparent and fair 
changeover that the Croatian authorities took all necessary steps to prevent abusive practices. 
The impact of unwarranted price increases on aggregate inflation seems to have been relatively 
small  and  broadly  in  line  with  what  was  observed  in  previous  changeovers,  based  on  a 
preliminary  assessment  of  available  evidence.  The  Report  formulates  amongst  others 
recommendations for future changeovers on how to intensify price monitoring and how to roll 
out a code of business conduct at an early stage of changeover preparations. 

2 

 
 
 
 
 
 
1. 

INTRODUCTION 

The  Council  decided  on  12 July  2022  that  Croatia  fulfilled  the  necessary  conditions  for  the 
adoption of the euro and that its derogation from participating in the single currency was to be 
abrogated with effect from 1 January 20231. 

Croatia has become the 20th country to change over to the euro. It followed the practice of all 
Member States that have adopted the euro after the first  changeover wave (1999–2002) and 
used the so-called "big-bang" changeover scenario, i.e. euro banknotes and coins acquired legal 
tender status on the day of euro adoption2. A two-week dual circulation period, during which 
both euro and Croatian kuna banknotes and coins circulated in parallel, allowed for the gradual 
withdrawal  of  kuna  cash.  This  successful  changeover  demonstrates  again  that  a  short  dual 
circulation period is sufficient if the changeover is well prepared3. 

This  report  covers  the  most  important  aspects  of  the  changeover  process  from  an  ex  post 
perspective focusing on the preparations for the cash changeover, the dual circulation period, 
measures  taken  to  prevent  abusive  price  practices  and  address  perceived  inflation  concerns, 
price trends and perceptions, and communication on the euro. Where relevant, the report also 
sets out the Commission's recommendations on further possible action to be taken by Croatian 
authorities and draws conclusions which may be of value for future changeovers. 

2. 

THE PRACTICAL ASPECTS OF THE CHANGEOVER 

A majority of Croatians (61%) perceived the changeover as smooth and efficient while 88% of 
the population considered they were well informed about the euro4. Against this backdrop, three 
practical aspects of the euro changeover shall be looked at in more detail: the preparations for 
the cash changeover, the period of dual circulation of kuna and euro cash and the withdrawal 
of kuna cash from circulation. 

2.1. 

Preparations for the cash changeover 

The cash changeover is the most visible element of the adoption of the single currency since all 
financial institutions, businesses and citizens are involved. The smoothness and efficiency of 
this operation depends on a proper supply of euro cash to all parties involved and on banks and 
businesses being well prepared for the large extra workload. 

To prepare for the changeover, the Croatian Mint produced 405 million pieces of euro coins in 
2022. Practical fitness tests of sample coins in vending machines used in the euro area started 
relatively  late,  but  did  not  point  to  any  concerns.  39.6  million  pieces  of  coins  were  used  to 
prepare  citizen  starter  kits,  which  contained  33  euro  coins  of  all  Croatian  euro  coin 
denominations worth EUR 13.28. Furthermore, the Mint prepared commercial starter kits for 

1  

2  

3  

4  

 Council  Decision  (EU)  2022/1211  of  12  July  2022  on  the  adoption  by  Croatia  of  the  euro  on  1 
January 2023 (OJ L 187, 14.7.2022, p. 31–34). 
The first-wave Member States adopted the euro according to the 'Madrid Scenario', which involved a 
transitional period of three years (one year for Greece). 
 Lithuania,  Latvia,  Estonia,  Slovakia  and  Slovenia  also  had  a  two-week  dual  circulation  period, 
whereas  in  Malta  and Cyprus it was one month. 
 Flash  Eurobarometer  518,  field  work  carried  out  16 
http://ec.europa.eu/economy_finance/articles/pdf/fl412_report_final_en.pdf 

to  19  January  2023,  available  at: 

3 

 
 
 
 
                                                 
businesses  containing  525  euro  coins  of  all  denominations  with  a  value  of  145.50  EUR.  In 
addition, the Croatian National Bank bought 182 million pieces of euro coins from stocks of 
two euro area countries and borrowed from another euro area country 45 million pieces of euro 
coins that will be returned in 2023. Finally, the Croatian National Bank borrowed more than 
346 million pieces of banknotes of various denominations from the National Bank of Austria. 

On 1 October 2022, the Croatian National  Bank started to provide financial institutions, i.e.  
783  branches  of  commercial  banks,  1,016  Croatian  post  offices  and  169  branches  of  the 
Financial Agency (FINA), with euro cash (front-loading). Given the security risks related to the 
frequency and high volume of euro cash transportation (around 700 transports compared to 60 
in a normal period), the Croatian National Bank organised the transportation of cash by regular 
means (own lorries and vehicles from cash-in-transit companies) and in addition for the coins 
through transportation by trucks rented from the Ministry of Defense. By 31 December 2022, 
euro  banknotes  worth  EUR 1.14 billion  and  euro  coins  worth  EUR  160  million  had  been 
frontloaded. 

Financial institutions started to provide their corporate customers with euro banknotes and coins 
(‘sub-frontloading’) on 1 October 2022, whilst smaller corporate clients using simplified sub-
frontloading received deliveries of euro cash in December 2022.  

On  31  December  2022,  financial  institutions  sub-frontloaded  euro  banknotes  worth 
EUR 76 million to their clients. By the same date, euro coins with a value of EUR 44 million 
were sub-frontloaded to clients. 

On  31  December  2022  the  level  of  sub-frontloading  was  only  8%  of  the  total  frontloading  
value. This led to some queues at banks’ counters in the first days of January 2023 when many, 
mostly smaller, retailers and businesses started to withdraw euro cash. Acording to the Croatian 
authorities the reason for the late sub-frontloading of these retailers and businesses was likely 
to be the reluctance to provide collateral to the banks in the last quarter of the year 2022 to 
finance the purchase of euro banknotes and coins in sufficient quantities. However, apart from 
some longer queues in the beginning of January, no incidents were reported where businesses, 
retailers or the public had problems withdrawing euro cash. 

The sale of starter kits for citizens was satisfactory (877,952 kits were sold by 31 December), 
taking into account the fact that according to a Commission survey of December 20225, a large 
proportion  of  Croatians  already  possessed  euro  cash  before  the  changeover:  68%  held  euro 
banknotes (35% from a trip abroad, 37% from an exchange in a bank in Croatia) and 57% held 
euro coins (52% from a trip abroad and 43% from a starter kit).  

In contrast, the demand for retailer starter kits was more restrained. Although 150,000 kits were 
produced, of which 125,000 were frontloaded to financial institutions, only 37,925 kits were 
finally sold  to  retailers.  There may be several  reasons for this  low demand according to  the 
Croatian  authorities.  First,  some  businesses  used other  channels  for  sub-frontloading,  which 
satisfied their needs by supplying both euro banknotes and coins at the same time. Furthermore, 
several smaller retailers could not purchase retailer kits due to insufficient liquidity at the end 
of  the  year,  and  others  did  not  have  enough  space  in  their  safes  to  store  kuna  and  euros 
separately. In addition, the retailer kits contained only euro coins but not euro banknotes though 
retailers preferred to  have both  euro banknotes and coins  in  one  go.  Finally, many business 

5  

Flash Eurobarometer 516, carried out in Croatia between 29 and 30 December 2022, p.3. https://economy-
finance.ec.europa.eu/euro/eu-countries-and-euro/croatia-and-euro_en 

4 

 
 
 
                                                 
 
entities prioritised electronic payments and some of them closed their shops at the beginning of 
January 2023 for holidays.   

Like for any euro changeover, commercial banks, FINA and post offices had to handle high 
amounts of cash at the turn of the year due to sub-frontloading of retailers and businesses, the 
sale of starter kits and crediting of returned kuna cash. Commercial banks reinforced their staff 
during  the  changeover  and  also  opened  dedicated  additional  counters  to  facilitate  cash 
operations.  Thanks  to  to  the  increased  number  of  counters,  there  was  no  need  for  extended 
opening hours. Most bank employees were not allowed to take vacation between November 
2022 and January 2023. Finally, each bank conducted trainings for  their employees to work 
with the euro and more than 6,713 bank staff completed the changeover training on the HNB’s 
e-learning platform for working with the euro. By 31 December 2022, all employees who work 
with cash from all financial institutions had acquired training certificates. 

2.2. 

The dual circulation period 

The  two-week  dual  circulation  period  during  which  the  euro  and  the  Croatian  kuna  were 
circulating in parallel expired on 14 January 2023.  

Most automated teller machines (ATMs) were ready and available for the withdrawal of euro 
banknotes on 1 January 2023. In late December 2022, ATMs were loaded with EUR 10 and 20 
and sometimes also with EUR 50 banknotes, ready for withdrawal as of 1 January. 70% of all 
Croatian ATMs (i.e. 2,800 out of around 4,000) were issuing euro banknotes immediately on 1 
January, rising to 86% coverage one week later. All ATMs have been issuing euro banknotes 
since 14 January 2023 and are functioning normally. 

By the end of the dual circulation period, EUR 361 million had been withdrawn at ATMs. This 
is EUR 15 million less than the value of kuna banknotes withdrawn from ATMs during the 
same  period  in  the  previous  year.  The  decrease  is  likely  due  to  the  promotion  of  electronic 
payment methods by retailers during the changeover period. 

All  point-of-sale  (POS)  terminals  switched  instantaneously  to  the  euro  on  1  January  2023. 
During the dual circulation period,  payment  cards  were  used  in  16.8  million  transactions 
with a total value of EUR 415.8 million. Compared to the same period in January 2022, use 
of electronic payments in January 2023 increased by 15.3%. 

Due to careful preparations, financial institutions, post offices and FINA coped well with the 
extra workload during the dual circulation period. Banks provided additional banknote counters 
for cash services in most of their branches, and in the largest and busiest branches kuna coin 
deposit machines were installed.  

The channels providing exchange from Croatian kuna to euro comprised 846 bank branches, 
1,016  post  offices  and  169  FINA  branches.  The  total  value  of  kuna  cash  exchanged  by  15 
January 2023 was EUR 361.4 million. 72% of the value of kuna cash was exchanged at bank 
branches, 15% at post offices and 13% at FINA branches. 

According to a Commission survey carried out between 16 and 19 January 2023 in Croatia6, 
81%  of  those  polled  did  not  experience  any  problems  when  exchanging  kuna  cash  or 

6  

Flash Eurobarometer 518, see footnote 4. 

5 

 
 
 
 
                                                 
withdrawing euro cash at banks in the first week of January. This figure is lower than those 
recorded during some previous changeovers, but is nevertheless a satisfactory result7. 

The transition to the exclusive use of euro cash in payment transactions was fast and passed 
without major incidents for consumers. Already on the second day of the changeover (2 January 
2023), 29% of the public were making cash payments with euro cash only.8 By 7 January, 62% 
of the citizens polled paid in euro cash only.  The day before the end of the dual  circulation 
period, this percentage reached 99%9. 

Overall, the retail sector also coped well with the challenges of the changeover process and the 
handling of two currencies at the same time. Retailers were well supplied with euro cash and 
no  major  problems  with  queues  were  reported.  Already  on  2  January,  81%  of  the  citizens 
received change in euro only. This share increased to 99 % on 13 January. 

2.3.  Withdrawal from circulation of Croatian kuna banknotes and coins  

As a cash-intensive economy, the withdrawal of kuna cash from circulation in Croatia posed a 
particular challenge.  

The Croatian National Bank expects 500 million pieces of kuna banknotes and 1.1 billion pieces 
of kuna coins in circulation to be returned in due course. Taking into account the high volume 
of  kuna  banknotes  and  coins  in  circulation  in  2022,  the  Croatian  National  Bank  started  the 
gradual withdrawal of kuna cash in early 2022. 

In order to incentivize commercial banks to deposit excess stocks of kuna in cash centres before 
1 January 2023, the Croatian National  Bank suspended cash depositing fees for commercial 
banks  as  of  November  2022.  Through  different  communication  channels  and  the  media, 
commercial banks and the Croatian Banking Association invited their clients to use non-cash 
payments where possible during the dual circulation period.  

By December 2022, the value of kuna in circulation had decreased by 40% compared to January 
2022. 

The withdrawal of kuna banknotes and coins from circulation started on time and successfully. 
By 31 January 2023, 134.6 million pieces of kuna banknotes and 230 million pieces of kuna 
coins had already been withdrawn from circulation. 

Kuna banknotes and coins can still be exchanged until 31 December 2023 at commercial banks, 
FINA and post offices free of charge (with a maximum of 100 banknotes and 100 coins per 
exchange). For the exchange of larger numbers of banknotes or coins, commercial banks can 
charge a fee. As of 1 January 2024, kuna banknotes and kuna coins can only be changed at the 
Croatian National Bank. The exchange of banknotes is free of charge and unlimited in time, but 
the kuna coins can be exchanged until 31 December 2025. 

The Croatian National Bank will keep returned kuna coins in vaults and start demonetisation 
only on 1 January 2026, i.e. after the period for submission of kuna coins for  exchange has 
ended. This means that no costly mechanical demonetisation (such as punching) of the kuna 

7  

8  

9  

The corresponding figures were 95% in Estonia, 90% in Slovakia, 88% in Cyprus, 85% in Malta and 96% 
in Slovenia. 
Flash  Eurobarometer  517,  field  work  carried out 2  to  14 January  2023,  available  at:  https://economy-
finance.ec.europa.eu/euro/eu-countries-and-euro/croatia-and-euro_en  
Flash Eurobarometer 517, page 20. 

6 

 
 
 
 
                                                 
coins will be necessary, as the coins cannot be exchanged anymore. The coins will be sold as 
scrap metal or for melting to interested buyers. In the meantime, demonetisation of returned 
kuna banknotes has started. 

3. 

PREVENTING ABUSIVE PRICE PRACTICES  

The  possible  impact  of  the  changeover  to  the  euro  on  prices  in  Croatia  is  a  natural  and 
understandable  public  concern  as  with  any  changeover  to  the  euro.  As  this  was  the  first 
changeover to the euro to occur in a high inflation environment, this concern was particularly 
acute and challenging for Croatia to address. It was, therefore, pivotal for a transparent and fair 
changeover that the Croatian authorities took all necessary steps to prevent abusive practices. 

The obligatory dual display of prices (in kuna and euro) started on 5 September 2022 and will 
end on 31 December 2023. Since September 2022, the Croatian authorities have been constantly 
monitoring  the  prices  of  103  pre-defined  and  frequently  purchased  consumer  products  and 
services in 9 Croatian cities.  

The "Business Code of  Ethics for the introduction of the euro"  was  launched on  16 August 
2022. It sets out the principles for ethical conduct with a view to creating a safe environment 
for  consumers  during  a  reliable  and  transparent  introduction  of  the  euro.  It  aims  to  ensure 
stability  of  prices  for  goods  and  services  by  helping  businesses  to  correctly  recalculate  and 
display  prices,  without  unjustified  increases.  Its  seven  principles  also  include  important 
elements  of  the  practical  preparations  such  as  the  correct  conversion  of  prices  and  other 
monetary values, the displaying of a fixed conversion rate, and the information and training of 
employees on the procedure for the introduction of the euro.  

The  Code  invites  businesses  to  commit  not  to  misuse  the  changeover  for  their  own  profit, 
respect the changeover rules and provide the necessary assistance to their clients. It follows the 
lines of the  voluntary initiatives employed successfully  in  previous  changeovers. Businesses 
that join the initiative acquire the right to display the Code’s visual identification label – a logo 
and a slogan at the points of sale, at the places of supply of services and websites, and during 
marketing and promotional activities such as printed leaflets and catalogues, online advertising 
and  social  media  marketing,  mobile  applications  and  other  media.  The  label  signals  to 
consumers that prices are correctly calculated and that business entities are reliable. Where the 
principles have not been complied with, the right to display the label will be revoked.  

By the end of 2022, more than 900 companies that sell goods or services to consumers had 
subscribed to the Business Code of Ethics. By the end of February 2023 1,046 businesses had 
joined the Code, which is equivalent to 83.5% of all retailers and large groceries registered in 
Croatia selling goods and services to consumers. According to the Croatian authorities, 100% 
of commercial banks, insurance companies and other financial institutes have subscribed to the 
Code. Against this background, more than 15,000 stickers marking the adherence to the Code 
were  distributed  at  the  points  of  sales  of  all  entities  (mother  company,  subsidiaries  and 
branches) which have signed up for the Code. 

Based on the Croatian Act on euro introduction and the Consumer Protection Act, the Croatian 
authorities are monitoring the compliance of businesses, retailers and service providers with the 
requirements for price display and conversion as well as the duty of all economic operators not 
to increase prices on unjustified grounds. 

The inspectorates carry out inspections at their own initiative and further to complaints based 
on  both  acts.  Until  28  February  2023,  the  market  and  tourism  inspections  of  the  State 

7 

 
 
 
Inspectorate amounted to 12,355, out of which 20.3% revealed violations. In 11.5% of these 
violations, the inspectorates imposed fines for a total amount of around 538,000 EUR. Most of 
the fines were based on breaches of the Consumer Protection Act. 

Croatians generally considered the dual display of prices to be a useful tool to facilitate price 
comparisons and to  get  used to  thinking in their new currency. According to  a Commission 
survey carried out in January 202310, over three quarters of people in Croatia (78%) said they 
found  the  dual  display  of  prices  useful  during  the  changeover.  However,  60%  of  Croatians 
surveyed often or very often felt that the dual displays of prices were implemented correctly, 
the lowest proportion of all changeovers. 

When asked about price conversions, nearly half of the respondents (44%) said they often or 
very often felt price conversions were correct.11 This result is within the range of results of the 
last euro changeovers (Estonia, Latvia and Lithuania). 

Consumers  can  submit  complaints  through  the  website  euro.hr.  Complaints  are  followed  up 
within a maximum of 48 hours after the complaint has been lodged. Concerns voiced by citizens 
have  been  mainly  related  to  issues  such  as  the  display  of  prices  and  the  application  of  the 
rounding  rules.  All  questions  and  complaints  are  being  handled  diligently  by  the  competent 
authorities. 

However, the impact  of  the euro on prices  and abusive price settings  remains a concern for 
Croatian citizens12. Therefore, it is recommended to continue supervising the dual display of 
prices, the correct conversion and rounding rules and the evolution of prices in general for a 
few extra months. 

4. 

PRICE TRENDS AND PERCEPTIONS 

According  to  a  Commission  survey  conducted  in  January  202313,  the  majority  of  Croatians 
(62%) think that the euro will increase inflation in their country (compared to 57% of Latvians 
and  58%  of  Lithuanians,  just  after  their  respective  changeovers).  A  quarter  of  respondents 
(25%) believed that joining the euro area would help Croatia to maintain price stability. This 
number was slightly higher in Lithuania (26%), and lower in Latvia (19%). 

Past  euro  changeovers  have  shown  that  proximity  businesses  and  service  providers  are  the 
sectors most prone to abusive price increases during the euro changeover. While their goods 
and services do not constitute a large proportion of the standardised consumer basket used to 
gauge inflation, they nonetheless tend to be purchased or consumed frequently and very often 
individually,  which  gives  them  high  visibility.  At  the  same  time,  other  more  favourable 
developments  in  prices  of  goods  purchased  less  frequently  may  not  be  so  salient  with 
consumers. As a result, perceived inflation often exceeds actual inflation. 

In the exceptional high-inflation environment of the Croatian euro changeover, it is not easy to 
distinguish legitimate drivers of inflation from the unwarranted price increases that constitute 
abusive practices, where merchants take unfair advantage of consumers’ imperfect information. 
In  a  period  of  high  inflation,  there  may  be  justified  price  increases  such  as  those  linked  to 

10  
11  
12  
13  

Flash Eurobarometer 518, see footnote 4. 
Flash Eurobarometer 518, see footnote 4. 
Flash Eurobarometer 518, see footnote 4. 
Flash Eurobarometer 518, see footnote 4. 

8 

 
 
 
                                                 
increases in prices of raw materials or renegotiations of supplier contracts, which typically take 
place at year’s end. 

The impact of unwarranted price increases on aggregate inflation seems to have been relatively 
small  and  broadly  in  line  with  what  was  observed  in  previous  changeovers,  based  on  a 
preliminary assessment of available evidence. A similar finding is observed also by Falagiarda 
et  al.  (2023)14.  The  subcategories  of  goods  and  services  that  were  in  previous  changeovers 
shown to be most affected by price increases recorded the highest monthly price increases on 
record15. However, given the relatively low weight of the most affected categories and given 
that the other subcategories were not as affected, the overall monthly growth in the prices of 
services  was  contained  at  1.2%  in  January  2023.  On  aggregate,  monthly  HICP  inflation  in 
January in Croatia was contained at 0.3%, and again at 0.3% in February. This suggests that 
any impact of the unwarranted price increases was likely limited to January.  

The relatively contained overall impact of the unwarranted price hikes on inflation  is in part 
due to the swift policy response of the Croatian authorities. Indeed, inspections resulted in the 
correction  of  some  inflated  prices  and  acted  as  a  deterrent  to  further  unwarranted  price 
increases.  

In line with the established practice following euro adoption in other Member States, Eurostat 
will assess price developments after the euro changeover in Croatia. The report of Eurostat can 
be expected in the second half of 2023.  

5. 

COMMUNICATION ON THE EURO 

Following the Council Decision of 12 July 2022, the Croatian authorities launched the intensive 
phase of their official communication campaign, ‘The euro – our money’. The campaign was 
in line with the national communication strategy whose general objective was to ensure that 
Croatia’s  population  is  clearly,  objectively,  accurately,  timely  and  properly  informed  of  the 
impact and practical changes related to the changeover from the kuna to the euro.  

In  the  framework  of  a  Partnership  Agreement  and  a  subsequent  Grant  Agreement  signed 
between the Ministry of Finance of Croatia and the European Commission, the communication 
campaign  was  co-financed  by  the  Commission  as  for  previous  changeovers  (with  the 
Commission financing up to 50% of eligible costs, up to total costs corresponding to 1 euro per 
resident).  

The  communication  campaign  aimed  to  inform,  reassure  and  engage  with  citizens  on  the 
changeover.  It  targeted  various  groups,  with  a  special  emphasis  on  vulnerable  and  sensitive 
groups such as language minorities, the elderly, citizens living in remote and sparsely populated 
areas, as well as blind and partially sighted people.  

The  campaign  involved  a  mix  of  communication  tools  and  activities,  including  a  website 
(euro.hr), TV and radio spots, billboards, a toll-free phone number, promotional materials, a 
brochure (1.45 million copies) distributed to households in cooperation with the Croatian Post, 

14 

15 

Falagiarda, M., Gartner, C., Mužić I., Pufnik, A. (2023), "Has the euro changeover really caused extra 
inflation in Croatia?”, SUERF Policy Brief, No. 571, April 2023 
Prices grew by 3.6% in domestic and household services, 3.4% in restaurants, cafés and the like, 2.9% in 
hairdressing salons and 2% in recreational and sporting services. HICP growth rates for January can be 
calculated as of 1999 in Croatia. 

9 

 
 
 
                                                 
educational  material  for  children,  ‘Euro  days’  events  in  different  cities  and  the  ‘Euro  on 
wheels’, a travelling euro exhibition with stops in 27 cities across the country.   

Most activities were performed in cooperation with external contractors, with the completion 
of  six  public  procurement  processes  allowing  the  authorities  to  benefit  from  the  services  of 
specialised  companies.  While  the  limited  time  available  between  the  positive  convergence 
report  and  the  changeover  posed  challenges,  the  cooperation  with  contractors  was  judged 
satisfactory by the Croatian authorities. 

Considering  public  concerns  about  the  possible  effects  of  the  changeover  on  prices,  a  close 
media monitoring was done, and inspections were undertaken by the Croatian authorities during 
the  changeover  to  monitor  and  address  abusive  price  practices.  Such  government  activities, 
combined with the publication of actual inflation data for the changeover period on 1 February, 
alleviated the concerns in part, at least judging from the more limited number of press articles 
reporting cases of changeover related price increases. 

The communication campaign contributed to a smooth changeover to the euro, as confirmed by 
a Eurobarometer survey showing that 88% of citizens felt well-informed on the introduction of 
the euro; 61% found the process to be smooth and efficient; and 81% said that they experienced 
no problems when exchanging kuna cash into euro or when they withdrew cash from banks in 
the first week16.  Moreover, the Croatian authorities report that according to the third wave of 
the  national  public  opinion  polls  carried  out  in  February  2023,  around  64%  of  respondents 
support the introduction of the euro, while 30% oppose its introduction. 91% felt well-informed 
on the introduction of the euro, 87% indicated television as their main source of information 
against 36% for radio and 38% for social networks.  

In addition to supporting Croatia’s national communication campaign with advice and financial 
resources, the Commission implemented its own communication activities in the run-up to and 
during the changeover, in line with what was done for previous changeovers. 

6. 

CONCLUSIONS  ON  THE  CROATIAN  EURO  CHANGEOVER  AND  RECOMMENDATIONS 
FOR  FUTURE EURO CHANGEOVERS 

The  cash  changeover  in  Croatia  was  well  prepared  and  organised.  Financial  institutions, 
businesses and citizens were adequately supplied with euro cash in advance of the changeover. 

  In future changeovers, euro coins, which are produced by the national mint, should be 
tested in vending machines used across the euro area as early as possible to ensure their 
fitness for circulation upfront and avoid potential delays in minting and frontloading of 
the coins. 

The  cash  changeover  in  Croatia  went  smoothly.  ATMs  and  point  of  sale-terminals  were 
converted  on  time.  Financial  institutions,  FINA  and  post  offices  coped  well  with  the  extra 
workload during the dual circulation period. Retailers  coped well with the challenges of the 
changeover  process  and  the  handling  of  two  currencies  at  the  same  time.  They  were  well 
supplied with euro cash and pursuant to a Commission survey, already on 2 January 2023, 81% 
of the citizens polled received change in euro only.17 

16  
17 

Flash Eurobarometer 518, Croatia after euro changeover, 26 January 2023. 
Flash Eurobarometer 517, see footnote 8. 

10 

 
 
 
                                                 
The conditions of the Croatian changeover were particularly challenging compared to recent 
changeovers because the changeover took place in a high inflation environment. Croatia started 
the dual display of prices in September 2022 and set up a Business Code of Ethics in line with 
the recommendations of the Commission18 to which every retailer, business or service provider 
could subscribe. 

The  Croatian  authorities  should  continue  with  intensive  price  inspections  to  ensure  that  the 
prices are correctly indicated, curb unwarranted increases and, where applicable, enforce the 
duties under the Act on the Introduction of the Euro, Consumer Protection Act and Business 
Code of Ethics. 

  In  future  changeovers,  price  monitoring  should  be  especially  intense  in  respect  of 
sectors most at risk, so that unwarranted price increases can be identified swiftly. This 
would  enable  to  better  focus  inspections  and  policy  towards  offenders,  while  also 
reducing the prominence of anecdotal evidence and dispelling unfounded concerns in 
the public discourse.   

  In future changeovers, attention should be paid to rolling out a Business Code of Ethics 
or the like as early as possible to reach a maximum of businesses. Smaller and micro 
enterprises as well as service providers should be encouraged  actively to join such a 
scheme because by experience these businesses are the most reluctant to join. National 
authorities should increase the number of price inspectors during the changeover period 
and in the end of the year period in particular. 

As dual price indication comes with a cost and citizens are relatively quickly acquainted with 
the single currency, the  obligatory period of dual price indication could be shortened to one 
year rather than last until the 31 December of the year of the changeover. 

  Especially where a fair euro introducer scheme such as the Business Code of Ethics is 
set up, reaches a maximum of businesses, and runs effectively, the dual price indication 
would start as usual as soon as the conversion rate is known and could end after one 
year. 

The communication and public awareness campaign contributed to a smooth changeover to the 
euro in Croatia. 88% of citizens felt well informed of the introduction of the euro, 61% found 
the process to be smooth and efficient and 81% said that they experienced no problems when 
exchanging kuna cash into euros or when they withdrew cash from banks in the first week. 

  Given  the  relatively  short  time  between  a  positive  convergence  report  and  the 
changeover date, Member States to change over to the euro should build on Croatia’s 
experience in procuring their communication needs by dividing the contract in lots to 
cope best with possible delays and to ensure contingency.      

18  

Commission Recommendation of 10 January 2008 on measures to facilitate future changeovers to the 
euro (OJ L 23, 26.1.2008, p. 30). 

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