Right-wing opposition says Croatia not ready for euro, Finmin lists pluses

ZAGREB, May 5, 2022 – The right-wing opposition said on Thursday that Croatia was not ready to introduce the euro and that it would lower living standards, while Finance Minister Zdravko Marić spoke about the benefits and said a lot had been done to reduce the negative effects. effects as much as possible.

A number of regulations reduce the negative effects of the introduction of the euro on citizens and employers, from boosting healthy competitiveness to including civil society associations, Marić said during a debate on the final proposal to adopt the euro as legal tender in Croatia.

The benefits clearly outweigh the damages, he said, adding that the main benefits are the elimination of currency and interest risks, a two-notch higher credit rating and a lower risk premium. .

Sovereignists’ Marijan Pavliček said it was unwise to enter the euro zone at a time of great financial uncertainty, energy crisis and high inflation.

He said it was not an economic project, but the Prime Minister’s political project, that inflation was at 7.8% and GDP growth at 3%, that consumption had fallen, while the inflation and the deficit were increasing.

Bridge’s Božo Petrov says all independent financial experts say Croatia is not ready for the euro. He asked how the government would ensure that prices would not rise further, imports would not take over and wages would fall.

Marić said it was difficult to accurately predict or guarantee anything, even under more normal circumstances.

Ružica Vukovac from For a Just Croatia said now was not the right time and Croatia’s economic problems had to be solved first.

Ante Prkačin of the Democratic Movement said that by introducing the euro, Croatia would move further “from the fate of Croats in Bosnia and Herzegovina, who are subject to political terror”.

On the other hand, Emil Daus of the Democratic Party of Istria said that the introduction of the euro was a logical part of European integration. The issue is whether we will be a strong economy and a functioning state with clear long-term goals, he added.

Boris Lalovac of the Social Democratic Party said the euro would have a positive effect on transaction and exchange costs.

Zvane Brumnić of the Social Democrats said “our only chance is for someone else to take care of us”.

Grozdana Perić of the ruling HDZ said the euro would make business more favorable and safer, while facilitating investment, economic growth and improved living standards.

Marić recalled that the decision of the Council of the EU on Croatia’s accession to the euro zone was expected in July and that if all the conditions were met, the euro would be introduced on January 1.

He said Croatia met all the criteria, with last year’s deficit below 3%, the public debt-to-GDP ratio having been reduced by seven percentage points and inflation at the EU average. EU.

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