Debate: Adoption by Croatia of the euro on January
Date: MONDAY, 4 JULY 2022
Speaker: Siegfried Mureşan
Country: Germany
Language: EN

On 1 June, the European Central Bank and the European Commission both concluded that Croatia fulfils all legally—required conditions to join the euro area. Its debt complies with the requirements, its interest rate, its exchange rate, its inflation, and Croatian legislation is in line with the Treaty, including with the statute of the European Central Bank.  This is why we, as the European Parliament, say very clearly that once a country fulfils all legal requirements, it should be accepted to join without any further delay. This is why I have put forward, during the month of June, the draft report here to the ECON Committee in Parliament in which I propose that we give a green light to Croatia joining the euro area on 1 January 2023.  I would like to thank my shadow rapporteurs and I would like to thank our colleagues from the Committee on Economic and Monetary Affairs for voting with an overwhelming majority – 43 votes in favour, just one vote against, and two abstentions – and giving a green light on the side of Parliament for this important achievement. This shows that  During my visit to Croatia, I could see on the ground that Croatia fulfils the conditions in a very sustainable manner. Throughout the crisis, throughout the economic and social crisis generated by the Coronavirus that debt, the interest rate, inflation – all the economic indicators – respected the rules. I could also see that the politicians in that country, the main political parties, are supporting this. I could also see the popular support in the country in view of Croatia finally using the euro as their currency.  This means that the people of Croatia can easier travel to other countries of the euro area. It will be easier for investments from other countries of the euro area to invest in Croatia, to help develop the Croatian economy to generate jobs. It will be easier to trade. It will be easier for European tourists to go and enjoy the beautiful landscapes in Croatia. I am also of the strong belief that Croatian authorities know that 1 January will be the beginning, not the end, of the further economic development of Croatia.  Reforms need to continue. The economy needs to become even stronger and more competitive and, of course, the EU funds from the traditional budget of the European Union and from the Recovery and Resilience Facility can play an important role. During my discussions with Croatian Government representatives, the National Bank and colleagues in Parliament, I had the feeling that the authorities are aware of the importance that the EU funds grant, that they are committed to further managing people’s money and the budget with care, to further strengthening and reforming the economy.  This is why, to conclude, once again thank you very much to you, to our co-rapporteurs. A big word of congratulations to the people of Croatia. We are looking forward to welcoming Croatia as new member of the euro area. We are of the strong belief that this will be good not only for Croatia but for the European Union as a whole. It shows the trust that exists in our common currency.