At 12 am midnight on the 1st of January, Croatia entered the group of countries with European currency, the euro. It entered the world’s largest passport-free travel area, Europe’s Schengen zone, after almost a decade since being part of the European Union. It eradicated many border checkpoints in the process.
A small nation in the Balkan region with a population of 4 million, it witnessed one of the biggest wars 30 years ago that shattered its economy.
Croatia’s own currency kuna will continue to be legal tender until 15 January, but until the end of 2023, they can be converted for euros at Croatian banks.
Major credit and debit cards will be valid in most banks and hotels. Most ATMs accept standard international credit and debit cards.
Pounds sterling and US dollars are converted into euros. Only exchange currency at reputable locations like banks and exchange bureaus.
Joining Europe’s passport-free Schengen zone would allow Croats to travel to the union’s 27 member countries without a passport for any purpose like work or leisure.
With the euro now Croatia’s currency, it will profit the European member to strengthen its ties with the other 19 users of the euro and with the European Central Bank. Additionally, traveling and business with these countries will be made convenient. The convenience would include hassle-free travel without having to exchange Croatian currency and doing business.
At the time of the new year’s celebrations, Croatia’s interior minister, Davor Bozinovic, remained at the Bregana border crossing with Slovenia to wish all the best to the last travelers who had their passports checked there.
After this event, Croatia will still keep on applying rigid border controls on its eastern borders with non-EU members and neighbors Bosnia, Serbia, and Montenegro.
“We opened our doors to borderless Europe. This goes beyond eliminating border controls, it is the final affirmation of our European identity,” the interior minister said after the ramps at the Bregana border crossing lifted for the last time, while he was accompanied by his Slovenian counterpart Sanja Ajanovic-Hovnik.
Just after midnight, Croatia’s Finance Minister and Central Bank Governor Boris Vujčić went to an ATM in the capital, Zagreb, to take out euro banknotes and symbolically declass Croatia’s old national currency, the kuna, to history.
Croatia became an EU member in 2013 but adopted the euro years later as it had to implement a set of rigid economic conditions, like a stable exchange rate, controlled inflation, and positive public spending.
The Croatian kuna and the euro both will be used for payments for only 14 days, but people who would shop during this duration in January will receive only euros in change.
In a time when worldwide inflation has risen sharply since Russia’s invasion of Ukraine in February, experts think Croatia’s adoption of the euro will help safeguard the country’s economy.
The largest passport-free zone in the world, Schengen, which allows more than 400 million people to travel freely among its member countries, will also welcome its 27th country.
While many people are happy that border checks are no longer necessary, some are concerned about the currency change; right-wing opposition groups claim that it mainly benefits powerful nations like Germany and France.
