LUXEMBOURG (Reuters) – Euro zone finance ministers backed on Thursday Croatia’s bid to undertake the euro, clearing another hurdle on the way of the Balkan country to develop into the 20th member of the currency space from the begin of 2023.
“I am quite delighted to announce that the Eurogroup agreed currently that Croatia fulfils all the necessary problems to undertake the euro,” mentioned Paschal Donohoe, President of the Eurogroup, which brings together the finance ministers of euro zone nations.
The European Fee explained on June 1 that Croatia was ready to be a part of. With the finance ministers’ backing on Thursday, Croatia’s membership will now have to be accepted by EU leaders up coming 7 days.
EU finance ministers will then established in July the exchange rate at which Croatia’s forex, the kuna, will be transformed into the euro on Jan. 1, 2023, supplying the place 6 months for realistic preparations for the forex switch.
To adopt the euro, Croatia, a member of the EU considering that 2013, experienced to fulfil standards of price and exchange price security, budget deficit and general public credit card debt and lengthy-term interest costs, all measured versus EU benchmarks. [L8N2XO2BP]
The Commission also examined its financial integration and convergence with the rest of the euro zone, including equilibrium of payments trends and the integration of its product or service, labour and economical marketplaces and confirmed that its central bank regulations are compatible with euro zone guidelines on the European Central Bank.
(Reporting by Jan Strupczewski extra reporting by Francesco Guarascio Modifying by Gareth Jones)