Croatia and its Path to Becoming The 20th Member of the Eurozone in 2023: How the Process Will Take Place? 

The European Union has had a challenging year in 2013, as the area has confronted a global financial crisis. All of these reasons have contributed to widespread skepticism about the functioning of European integration, which has been compounded by the acceptance of Croatia as the EU's 28th member.

Crotia is an ex-Yugoslav republic that obtained independence following the 1991 war. Only a year ago, the European Economic Community and the United Nations granted the country diplomatic status. The conclusion of the Crotian Independence War saw not only diplomatic engagements, but also democratization and overall socioeconomic changes in the country. The post-war reconstruction effort has seen the country gain substantial prominence in the international arena, particularly through strategic agreements signed with strategic partners. Along with the World Trade Organization, the most likely major changer was the EU integration, which had begun with admission negotiations in 2011. Despite Slovenian obstacles to the negotiation process due to border conflicts, the country has achieved the criterion for full membership in only two years.

However, the country has yet to accept the Euro, since the Treaty of the European Union expressly states that member states must adopt the euro currency if the required circumstances are met. As a result, the country that is a member of Economic and Monetary Union (EMU) nevertheless has a derogation on its currency. The official currency is the "kuna", which is nearly 7.5 times less valuable than the euro. This circumstance, however, should not lead us to assume that the country is losing ground against the currency; on the contrary, Croatia's national minimum wage will remain €623.7 per month in 2022, ranking higher than Hungary, Bulgaria, or Romania. Moreover, as Joy Oliver has stated in his article published on CNN in 2013; the Croatians have already been using the euro currency for their savings or real estates. 

The Eurogroup, an informal committee within the Council of the European Union that facilitates ministers from eurozone member states to review eurozone matters, has previously recommended to the European Council that the country introduce the shared currency in 2023. This is an astounding success for the Balkan country, considering that the convergence criteria appeared to be completed less than a decade after the country became a member state. The European Commission's Convergence Report 2022, issued on June 1st, 2022, has also revealed that Croatia is poised to join the currency and move the eurozone member states to 20.

One significant issue may arise: how will this procedure take place? The Government of the Republic of Croatia adopted a National Euro Changeover Plan in December 2020, with specifying three phases to be completed. The first phase will appear six months before the implementation and will encourage Crotians to deposit surplus cash in kunas. During the same period, Euro banknotes and coins will be distributed to banks and businesses. The Eurosystem will supply the banknotes, whereas the coins will be minted in the country. As the euro is introduced, there will be a two-week period of dual circulation during which citizens will be able to freely exchange their national money for the European one. The process will last six months in banks and up to three years after the euro currency is introduced by the central bank.

Source for the chart: https://cashessentials.org/croatia-set-to-adopt-the-euro-in-january-2023/