As Index writes on the 9th of July, 2019, Finance Zdravko Marić and Governor of the Croatian National Bank (CNB/HNB) Boris Vujčić expressed their joint satisfaction on Monday in regard to the reactions they’ve received after sending a letter of intent on entering the European Exchange Rate Mechanism (ERM II) on behalf of the Republic of Croatia. This move marked the first official step to Croatia’s Eurozone entry.
They were also satisfied with the manner in which it was received by the powers that be.
MEPs from nineteen Eurozone countries and Denmark, the president of the European Central Bank and a representative of the Governor of the Central Bank of Denmark, discussed the Croatian letter of intent during a meeting in Brussels, Belgium, on Monday.
Following the meeting, the finance ministers of the Eurozone and Denmark released a statement in which they stated that “they welcome the intention of the Croatian authorities to establish the elements necessary for its successful entry into the ERM II”.
Four days ago, Croatia sent a letter of intent on entry into the European Exchange Rate Mechanism (ERM II) to members of the Eurozone, Denmark and the European Union’s institutions, which marked the very first formal step towards participating in the ERM II, preceded by the introduction of the euro as Croatia’s official currency, replacing the kuna.
In addition to the letter of intent, the EU member states and institutions also received an encouraging ”action plan” from Croatia, detailing the reforms Croatia promises to finally implement before entering the ERM II.
Minister Marić told reporters after the meeting said that there is still a lot of work ahead of Croatia in order to successfully complete the process of entering the Eurozone.
“We will try to finalise everything in the next twelve months,” Marić assured.
In the statement from the Eurozone, it has been stated that the European Central Bank could complete its comprehensive assessment of the fulfillment of the requirements Croatia has promised to meet in its letter of intent in about a year.
In the case of a positive assessment, Croatia would enter the ERM II, in which it would stay for two years. This means that Croatia could introduce the euro as its currency in three years at the very earliest.
At the same time, upon its entry into the ERM II, Croatia would enter the Banking Union.
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