Croatia and the euro


's currency, the kuna, has used the euro as its main reference since its creation in 1994, and a long-held policy of the Croatian National Bank has been to keep the kuna's exchange rate with the euro within a relatively stable range.
Croatia's EU membership obliges it to eventually join the eurozone. Prior to Croatian entry to the EU on 1 July 2013, Boris Vujčić, governor of the Croatian National Bank, stated that he would like the kuna to be replaced by the euro as soon as possible after accession. This must be at least two years after Croatia joins the ERM2. Croatia joined the ERM II on 10 July 2020. The central rate of the kuna was set at 1 euro = 7.53450 kuna.
Many small businesses in Croatia had debts denominated in euros before EU accession.
Croatians already use the euro for most savings and many informal transactions. Real estate, motor vehicle and accommodation prices are mostly quoted in euros.

Public opinion

;Public support for the euro in Croatia

Convergence status

In its first assessment under the convergence criteria in May 2014, the country satisfied the inflation and interest rate criteria, but did not satisfy the public finances, ERM membership and legislation compatibility criteria. Subsequent convergence reports published in June 2016, May 2018 and June 2020 came to the same conclusions.

Target date for euro adoption

Croatia's EU membership obliges it to eventually join the eurozone. Prior to Croatian entry to the EU on 1 July 2013, Boris Vujčić, governor of the Croatian National Bank, stated that he would like the kuna to be replaced by the euro as soon as possible after accession. This must be at least two years after Croatia joins the ERM2.
The Croatian National Bank had anticipated euro adoption within two or three years of EU entry. However, the EU's response to the financial crises in eurozone delayed Croatia's adoption of the euro. The country's own contracting economy also poses a major challenge to it meeting the convergence criteria. While keen on euro adoption, one month before Croatia's EU entry governor Vujčić admitted "...we have no date in mind at the moment". The European Central Bank was expecting Croatia to be approved for ERM II membership in 2016 at the earliest, with euro adoption in 2019.
In April 2015, President Kolinda Grabar-Kitarović stated in a Bloomberg interview she was "confident that Croatia would introduce the euro by 2020", while Prime Minister Zoran Milanović said at the government session that "some occasional announcements when Croatia will introduce the euro shouldn't be taken seriously. We'll try to make it as soon as possible, but I distance myself from any dates and ask that you don't comment on it. When the country is ready, it will enter the euro area. The criteria are very clear." In November 2017, Prime Minister Andrej Plenković said that Croatia is aiming to join ERM-2 by 2020 and to introduce the Euro by 2025. Jean-Claude Juncker, President of the European Commission, stated in June 2019 that "Croatia is ready to join the ERM-2".
A letter of intent of joining the ERM II mechanism was sent on 5 July 2019 to the ECB, signed by Minister of Finance Zdravko Marić, and the governor of the Croatian National Bank Boris Vujčić. The letter marks the first formal step towards the adoption of the euro. Croatia committed to joining the Banking Union as part of its efforts to join ERM II.
On 23 November 2019, European Commissioner Valdis Dombrovskis said that Croatia could join ERM II in the second half of 2020.
Croatia joined the ERM2 on 10 July 2020. The central rate of the kuna was set at 1 euro = 7.53450 kuna. The earliest date for euro adoption, which requires two years of ERM participation, is 10 July 2022.