Croatia and the euro facts for kids
- European Union (EU) member states
- 20 in the eurozone 1 in ERM II, without opt-out (Bulgaria) 1 in ERM II, with an opt-out (Denmark) 5 not in ERM II, but obliged to join the eurozone on meeting convergence criteria (Czech Republic, Hungary, Poland, Romania, and Sweden)
- Non–EU member territories
- 4 using the euro with a monetary agreement (Andorra, Monaco, San Marino, and Vatican City) 2 using the euro unilaterally (Kosovo and Montenegro)
Croatia started using the euro as its money on January 1, 2023. It became the 20th country to join the eurozone, which is the group of countries that use the euro. This was the newest country to join the euro family. The exchange rate was set at 1 euro for 7.5345 Croatian kuna.
Croatia's old money, the kuna, had always been closely linked to the euro. Before the euro, it was linked to the Deutsche Mark, which was a main currency in Europe. The Croatian National Bank always tried to keep the kuna's value stable against the euro.
When Croatia joined the European Union (EU), it agreed to use the euro. But first, it had to meet certain economic rules called the euro convergence criteria. Before Croatia joined the EU on July 1, 2013, the head of the Croatian National Bank, Boris Vujčić, said he wanted the euro to replace the kuna as soon as possible. This had to happen at least two years after Croatia joined a special system called the European Exchange Rate Mechanism (ERM II). Croatia joined ERM II on July 10, 2020. Prime Minister Andrej Plenković announced in November 2020 that Croatia planned to adopt the euro on January 1, 2023.
Many small businesses in Croatia already owed money in euros before Croatia joined the EU. People in Croatia often used euros for their savings and for many everyday payments. Prices for homes, cars, and places to stay were often shown in euros.
On July 18, 2022, the Croatian Mint started making euro coins with special Croatian designs.
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How People Felt About the Euro
People in Croatia had different opinions about using the euro.
The graph above shows how much support there was for the euro in Croatia over time. In 2004, about 63% of people supported it. This number changed over the years, sometimes going up and sometimes down. By April 2022, around 55% of people supported the euro.
Meeting the Euro Rules
To join the eurozone, Croatia had to meet certain economic rules. These rules are called the euro convergence criteria.
- In 2014, Croatia met some rules, like those for inflation (how fast prices rise) and interest rates. But it didn't meet others, like those for public money and joining ERM II.
- Reports in 2016, 2018, and 2020 showed similar results.
- However, a report in June 2022 confirmed that Croatia had finally met all the rules needed to adopt the euro.
How Croatia Prepared for the Euro
Croatia's membership in the EU meant it had to join the eurozone once it met the special rules. Before Croatia joined the EU in 2013, Boris Vujčić, the head of the Croatian National Bank, wanted the kuna to be replaced by the euro very quickly. This change could only happen at least two years after Croatia joined the ERM II.
The Croatian National Bank thought Croatia would adopt the euro within two or three years of joining the EU. However, money problems in the eurozone slowed things down. Croatia's own economy also faced challenges. Even though Croatia wanted the euro, Governor Vujčić said in 2013 that there was "no date" in mind yet. The European Central Bank (ECB) expected Croatia to join ERM II by 2016 at the earliest, with euro adoption by 2019.
In 2015, President Kolinda Grabar-Kitarović hoped Croatia would use the euro by 2020. But the Prime Minister at the time, Zoran Milanović, didn't promise this timeline.
In November 2017, Prime Minister Andrej Plenković said Croatia aimed to join ERM II by 2020 and introduce the euro by 2025. In June 2019, Jean-Claude Juncker, the President of the European Commission, said that "Croatia is ready to join the ERM-2."
On July 5, 2019, Croatia officially sent a letter to the ECB saying it wanted to join ERM II. This was the first official step. Croatia also promised to join the Banking union of the European Union. In November 2019, a European Commissioner said Croatia could join ERM II in the second half of 2020.
Croatia officially joined ERM II on July 10, 2020. The value of the kuna was set at 1 euro = 7.53450 kuna. This meant the earliest Croatia could adopt the euro was July 10, 2022, because it needed to be in ERM II for two years.
Target Date: January 1, 2023
On November 11, 2020, Prime Minister Andrej Plenković announced that Croatia planned to adopt the euro on January 1, 2023.
In June 2021, Prime Minister Plenković said the government wanted to join the eurozone on this target date. In September, he confirmed that Croatia had full support from the European Commission and the European Central Bank. He was confident Croatia would be ready by early 2023. Croatia also signed an agreement with the European Commission and eurozone countries about making Croatian euro coins. In December, Croatia and the European Commission signed another agreement to inform people about the change from kuna to euro.
In November 2021, a political party tried to get enough signatures for a public vote to stop the euro adoption, but they failed.
On December 10, 2021, the Finance Minister announced that a law for introducing the euro was being prepared. He said that from January 1, 2023, Croatia would switch to the euro overnight. For the first two weeks, people could pay with both kunas and euros. After that, only euros would be accepted. Prices would be shown in both kunas and euros for at least one year.
In January 2022, Prime Minister Plenković said that from September 5, 2022, prices would be shown in both kunas and euros until the end of 2023. In 2023, people could exchange kunas for euros for free at banks and post offices.
On May 13, 2022, the Croatian Parliament voted to approve the euro as the official money.
On June 1, 2022, the European Commission said Croatia met all the rules to join the euro area. They suggested that Croatia adopt the euro on January 1, 2023.
On June 16, 2022, the countries already using the euro agreed that Croatia should become the 20th member. Paschal Donohoe, the head of the Eurogroup, said he was "very pleased" that Croatia met all the conditions.
On July 12, 2022, the Council of EU passed the final laws needed for Croatia to adopt the euro. The fixed exchange rate was set at 1 euro = 7.53450 kuna.
From September 5, 2022, until December 31, 2023, all prices had to be shown in both currencies. This was to prevent businesses from unfairly raising prices. People could buy euro starter kits from December 1, 2022, to get used to the new coins. These coins could not be used before January 1, 2023.
For the first two weeks of January 2023, payments could be made in both kunas and euros. Any change given back would be in euros. After that, only euros would be used for payments. Kuna coins can be exchanged at the Croatian National Bank for three years, and kuna banknotes can be exchanged forever.
Croatian Euro Coin Designs
While the back of euro coins looks the same in all countries, each country can choose its own special designs for the front.
Croatia chose several national symbols for its euro coins:
- The Croatian checkerboard pattern.
- A map of Croatia.
- A marten (a small animal, which the old kuna currency was named after).
- Nikola Tesla, a famous inventor.
- The Glagolitic script, an old Croatian alphabet.
The designs were chosen after a contest and approved in April 2022.
| €0.01 | €0.02 | €0.05 |
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| Letters "HR" in Glagolitic script | ||
| €0.10 | €0.20 | €0.50 |
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| Picture of Nikola Tesla | ||
| €1.00 | €2.00 | €2 Coin Edge |
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 (Oh beautiful, oh precious, oh sweet Liberty, from a famous Croatian play) |
| Design of a marten | Map of Croatia | |
Where the Coins Were Made
The Croatian euro coins for 2022 were made at the Croatian Mint.
Cost of Switching to the Euro
The Croatian Ministry of Finance estimated that changing from the kuna to the euro would cost about 2 billion kuna (which is about €266 million). Most of this cost was expected to come from banks losing money they made from converting currencies. This might lead to banks charging more for other services. There was also a chance that prices for everyday goods might go up for people.
See also
- 2013 enlargement of the European Union
- Enlargement of the eurozone
