Croatia has begun the transition to the European currency. What is the population afraid of?


Croatia has started the transition to the European currency. What are the people afraid of? 

Croatia joined the eurozone on January 1, 2023, and since then, the country has been legally “walking” euro as the official currency.

According to the EU Commission, already on January 5, about 51% of cash payments in shops in Croatia were made in euros. Approximately 93% of transactions, that is, retail purchases, ended with consumers receiving change in brand new euros, which means that a significant proportion of Croatian citizens began to carry banknotes and coins in European currency.

Despite the fact that Croatia officially joined the eurozone on January 1, 2023, the withdrawal from circulation of banknotes and coins in kuna — traditional Croatian currency — began in December 2022, and by December 31, 2022, about 55 percent of banknotes one-third of the kuna coins were seized.

The commission believes that the Croatian retail sector is coping well with this process, and also notes that the ATM refurbishment also went smoothly. As of the first hour of January 1, 2023, 70% of all ATMs already dispense euro banknotes. At the same time, the number and volume of transactions remained at comparable levels to what it was before the transition to the euro.

To eliminate the fears of the population of the country about price increases during the transition period and to protect consumers, the Croatian authorities have already taken measures. From September 5, 2022, all businesses were required to display prices in euros and kunas in dual format. This requirement will remain in effect until December 31, 2023. Croatia has also introduced a Code of Business Conduct to ensure commodity price stability.

In addition to joining the eurozone and changing the currency from kuna to euro, Croatia also joined the Schengen area on January 1, 2023. Thus, intra-European border control with Slovenia, Hungary and Italy by sea, as well as with all Schengen countries by air, is now absent.

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