Marić: Total Cost of Introducing the Euro About HRK 2 Billion

By 9 March 2022
Marić: Total Cost of Introducing the Euro About HRK 2 Billion
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ZAGREB, 9 March 2022 - The cost of adapting the system to introduce the euro currency will cost about two billion kuna, Finance Minister Zdravko Marić revealed during a debate on the euro currency bill in the Sabor on Wednesday, underscoring that the positive aspects of that process outweighed the negative ones.

"We need to introduce the euro as soon as possible because Croatia is a highly eurorised country. Introducing the euro will mean a higher credit rating and hence lower interest rates. The business community also supports the euro, and being part of the euro area will better protect us in times of crisis," Marić said in response to concerns raised by lawmakers that introducing the euro would be an additional shock to citizens.

"When looking at the pros and cons of the euro, the balance is tipped towards the positive effects," Marić said.

He revealed that the total cost of adapting the entire system to the euro would cost about HRK 2 billion.

He said that consumer protection mechanisms have been foreseen and that in addition to dual prices, supervision would be conducted to prevent any unjustified price increases.

In those countries where the euro was introduced prices were rounded off, which meant an average increase of between 0.2 to 0.4 percentage points, while other inflationary pressures not related to euro introduction will be addressed by the government through measures to buffer the shock, Marić explained.

As far as the criteria regarding inflation are concerned, Croatia will meet them, he underlined.

Marić noted that the exchange rate to replace the kuna has been set at 7,5345 kuna for one euro and that it won't slide more than 15% up or down. The precise exchange rate will be known in July, he said.

For more information on Croatia's adoption of the euro, check out our dedicated business and politics sections.