EU: Croatia To Adopt Euro In 2023

Photo: Reuters [via N1 Info]

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.

Nerd narrative

There's a 4% chance that the eurozone will collapse before 2030, according to the Metaculus prediction community.


Establishment split

CRITICAL

PRO

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