HNB governor: Croatia may join ERM II by 2020 rather than EMU

Croatia will not enter the European Monetary Union (EMU) by 2020, but it might join the Exchange Rate Mechanism( ERM II), which will be an effective beginning of preparations for introducing the euro, Croatian National Bank (HNB) Governor Boris Vujcic said in Zagreb on Wednesday.

On Tuesday, Prime Minister Oreskovic said during his visit to Berlin that he had talked with Governor Vujcic about launching the process of introducing the euro in two years and for the process to be completed in four years.

Asked about his talks with Oreskovic on this topic, the HNB governor said that the possibility of introducing the euro depends on "our commitment to launching the process of fulfilling the National Convergence Programme and the National Reform Programme whereby we will meet the preconditions for our switch-over to the euro." Vujcic explained that this implied the implementation of structural reforms that would facilitate higher growth rates.

"Until 2020 we will not join the European Monetary Union, but we could join ERMII, which would mean the effective start of preparations for the adoption of the euro, and this is what the Prime Minister and I have talked about," Vujcic said.

Ivan Lovrinovic of the ruling Bridge party on Wednesday voiced his opposition to the adoption of the euro, explaining that this would only push Croatia towards the Greek scenario.

Lovrinovic, a professor at the Faculty of Economics of Zagreb University, said that a swift changeover to the euro would be beneficial only to banks and importers.

Ivan Suker of the ruling Croatian Democratic Union (HDZ), however, believes that it is Croatia's interest to join the eurozone because it is is already highly euroised.

Last update: Wed, 02/03/2016 - 19:55

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