I can't see it being mentioned here, but last month both the Commission and the Central Bank gave their approval to Croatia's plans to replace the kuna with the euro. They still need final approval by the European Council which is expected to happen later this month. If the Council votes yes, Croatia will start using the euro from 2023-01-01.
Update: The Council voted yes.
A cousin works at a bank in Croatia. She told us it will happen January 1, 2023.
Thank you for the update. What do you think about its effect on prices?
I don't understand economics but it would suck if Croatia became expensive
"it would suck if Croatia became expensive"
I remember the small inn we used to stay at, on arrival, just outside of Frankfurt - the room price was 70DM before the Euro and 70€ after the conversion.
Spain and France became more expensive after their Euro adoption.
A cousin works at a bank in Croatia. She told us it will happen
January 1, 2023.
She must have a really good crystal ball if she knew it before the Commission and the ECB!
Thank you for the update. What do you think about its effect on
prices?
I have no idea. Many have the impression that the euro has led to an increase in prices, but whether that is true is not an easy question to answer. Here is a bit of further reading if you are interested: https://www.princeton.edu/~ceps/workingpapers/101mastrobuoni.pdf
(On a side note, things are happening on the Schengen front as well.)
And now it is official, the Council has adopted the final acts of legislation and Croatia will be part of the eurozone next year. https://www.consilium.europa.eu/en/press/press-releases/2022/07/12/croatia-set-to-join-the-euro-area-on-1-january-2023-council-adopts-final-required-legal-acts/
I guess my cousin does have a crystal ball. But her crystal ball cannot predict how much prices will increase. Of course, people are hoping they won’t too much. We won’t know till next year.
This will be the end of reasonable-priced Croatia. The kuna-Euro conversion will allow prices to be jacked to the sky.
I saw a news video about locals not being happy about this. Those who sell to tourists will love it, however.
