Croatia is ready to adopt the euro on 1 January 2023, the Commission announced yesterday. If the Council confirms this conclusion, Croatia will become the 20th Member State in the euro area.
The news comes from the 2022 Convergence Report, a biennial publication that assesses the progress Member States outside the euro area have made towards adopting the euro.
The conclusion that Croatia, or any other Member State, fulfils the conditions for the adoption of the euro rests on four criteria: price stability, sound public finances (the country cannot be subject to an excessive deficit procedure), exchange rate stability, and the durability of convergence, based on the long-term interest rate.
Other criteria include balance of payments developments, integration of product, labour and financial markets, and national legislation in the monetary field being fully compatible with European Monetary Union.