ZAGREB, 9 March 2022 - The government's proposal to introduce the euro as the official currency in Croatia on 1 January 2023 divided MPs on Wednesday, with some seeing multiple benefits and others claiming that it will further lower living standards.
Darko Klasić of the Croatian Social Liberal Party (HSLS) said entry to the euro area would give Croatia and its economy a huge geostrategic umbrella in turbulent times.
Krešo Beljak of the Croatian Peasant Party (HSS) said Croatia was "finally" introducing the euro.
Anka Mrak Taritaš of GLAS said entering the euro area was a success for every country and that she hoped the benefit of its introduction would surpass possible setbacks.
Speaking of the benefits, she mentioned the removal of the currency risk, a reduction of borrowing costs, lower transaction costs, export and foreign investment incentive.
"This is the best thing that could have happened to Croatia," said Boris Lalovac of the Social Democratic Party.
Grozdana Perić of the ruling HDZ said Croatia had met all the conditions for introducing the euro, such as stability of prices, the exchange rate and public finances.
Marijan Pavliček of the Sovereignists said living standards "will additionally fall."
He said the prices of goods and services increased considerably during the first year in the countries which introduced the euro, while salaries and pensions did not, and that Croatia would be no exception.
The average pension will be €300 and a pensioner will give 10% of their pension for bread, he added.
Zvonimir Troskot of Bridge said the Croatian economy was not ready for the euro area, that not one serious structural reform was carried out, that Croatia was not absorbing EU funds in a timely fashion, and that it did not protect farmland nor have a flexible economy.
He said entry to the euro area would accelerate emigration.
Stephen Bartulica of the Homeland Movement said the euro served strong economies like Germany and the Netherlands, and warned about the irresponsible conduct of some banks and funds in the euro area.
When Greece was being bailed out, the calculation was that it must not leave the euro area because the owners of the Greek debt were German and French banks, which would not have survived the shock, he added.
For more information on Croatia's adoption of the euro, check out our dedicated business and politics sections.
