Croatia adopts euro as currency, enters free Schengen area
The Balkan nation is set to be the 27th nation in the Schengen zone which will enable its four million population to move freely in the passport-free Schengen area.
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Croatia to switch to euro, enter passport-free Schengen zone
The European Commission issued a press release on Saturday stating that on January 1st, 2023, Croatia will adopt the euro as its currency and will fully join the Schengen area after a decade since joining the European Union.
Experts argue that the move is intended to alleviate the effects of the union-wide energy crisis that began since Russia halted its exports of gas over western-imposed sanctions.
The Balkan nation is set to be the 27th nation in the Schengen zone, which will enable its four-million population to move freely in the passport-free Schengen area. But Croatians do not seem to be fully convinced over the upgrade.
Some political groups, in particular right-wing opposition groups, argue that this will benefit mostly large economies such as France and Germany.
Officials have said that joining the eurozone and Schengen is intended to deepen "two strategic goals of a deeper EU integration."
Read more: Bulgaria, Romania bids to join Schengen area blocked: Officials
For long, Croatians have priced their assets in euros, including cars and apartments, exposing a lack of confidence in the Kuna, their national currency. In November, official data indicated that inflation in the country had reached a staggering 13.5 percent.
Croatia is entering the Eurozone at a time when the bloc is itself going through a time of crisis.
The good news, however, is that the initiative is set to improve the industry of tourism in the country. The lifting of border checks at airports might however take a while due to technical issues, with officials scheduling the removal for March 26, 2023.
In 2 days 🇭🇷 will adopt the euro and will fully join the Schengen area.
— European Commission 🇪🇺 (@EU_Commission) December 30, 2022
With Croatia, 20 EU countries will share the EU's common currency.
As for Schengen, this is the eighth enlargement and the first after 11 years.
This marks an important milestone in our history.
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