Finance Minister Zdravko Marić said the bill defines that, after the Council of the EU decides to introduce the euro and adopts a regulation determining a fixed conversion rate, the government will make a decision announcing the date to introduce the euro, the fixed rate of conversion, the start and end date of both currencies being in use, and the start and end date of dual price display, as well as other issues related to euro introduction.
The bill also defines fundamental principles to introduce the euro, including the principle of consumer protection, the principle of banning unjustified price increases, the principle of continuity of legal instruments, the principle of efficiency and economizing, and the principle of transparency of consumer information said Marić.
Cash exchanges will be possible in banks, FINA financial agency branches, and post offices for a period of 12 months as of the introduction of the euro.
“Citizens will be able to exchange 100 notes and 100 coins per transaction without any fee. After the 12 months expire, exchanges will be conducted in the Croatian National Bank without any fee, and it will be possible to exchange notes for an unlimited period and coins for a period of three years after the introduction of the euro,” he underscored.
The period of both kuna and euros being in circulation will last 14 days after euro introduction. The bill also contains details regarding exceptions (poker machines, slot machines, ATMs).
The bill also contains regulations regarding dual price displays as a measure to protect consumers. Commercial enterprises will be obliged to show dual prices clearly, visibly noting the exchange rate. That obligation will apply as of September this year and ends at the end of 2023.
The bill defines also exceptions from dual price display where that isn’t practical, for example at market stalls, mobile sales, farms, warehouses, slot machines, recyclable packaging, gift cards, and so on).
The bill defines rules for the conversion of deposits in accounts, kuna payment orders, kuna loans, kuna leasing contracts, and the like as well as adjusting interest rates where necessary. The bill also envisages the obligation to report to clients about the conversion, which must not put consumers in a less favorable position than the one they would be in if the euro had not been introduced.
The bill also brings rules related to preparing the budget and financial plans for the year preceding the year of euro introduction, rules for business bookkeeping, rules on reporting, bodies in charge of oversight, and rules related to violations.
“And that is assuming Croatia meets the set conditions and the process of introducing the euro is completed and the euro is introduced on 1 January 2023,” said Marić.
A total of HRK 32.8 million of budget bunds has been secured in 2022 to implement the bill, plus an additional HRK 3.6 million in 2023 and HRK 0.9 million in 2024.
A total of HRK 13.3 million has been secured in the state budget for the financial plans of extra-budgetary users in 2022, and HRK 1.4 million in 2023.
County budgets for 2022 have been secured HRK 5.78 million while city budgets have HRK 15.89 million secured for 2022 for the implementation of the law.
Public consultation on the bill was conducted between 17 January and 15 February 2022 and 128 comments were submitted. The bill will be discussed under the regular procedure.
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