The government is deeply convinced that Croatia can start the process of introducing the euro, which has substantial and lasting benefits for the country, “said Croatian Prime Minister Andrej Plenkovic at Thursday’s cabinet.
The head of government emphasized that inflation has been low for two decades and a stable exchange rate, and has also achieved good results in fiscal and fiscal consolidation.
As he said, only the government debt should be reduced, reaching 78 per cent of the total domestic product (GDP) by the end of last year and is expected to fall to 65 per cent by 2021. One of the conditions for joining the euro area is that the budget deficit may not exceed 3 per cent of GDP, and the government debt may not exceed 60 per cent of GDP.
The strategy for the introduction of the euro at the Cabinet session analyzes carefully the economic benefits and the costs of introducing it, “said Plenkovic, adding that the latter will not be high, mostly one-off costs.
He signaled that the introduction of the euro will reduce the risk of financial and macroeconomic stability, interest and transaction costs.
“All this contributes to a faster growth in the economy and employment, the volume of investment is expanding, and the financial system and the economy become more resistant to various abnormalities”, he stressed.
The strategy does not include the date of introduction of the euro yet, but it knows exactly what action has yet to be taken to achieve this goal.
The document contains a number of measures that the government plans to implement in the near future.