January 1, 2023\u2019te Croatia becomes the 20th country to join the eurozone. The local currency kuna has been replaced by the euro.<\/p>\n
The country hopes to make its economy stronger and more stable with a single currency and improve the living standards of its residents.<\/p>\n
Some people regret the passing of the kuna<\/p>\n
Reactions at the fruit and vegetable market in Zagreb\u2019 are mixed.<\/p>\n
One customer says \u201cI'm happy with the change. \u201cThis is something new.\u201d<\/p>\n
Another, \u201cIt's not true that prices are increasing rapidly, says \u201d. \"Perhaps it's gone up a few cents, but that's nothing.\" - \u201c<\/p>\n
Others are less convinced.<\/p>\n
An old man, \u201c, the prices are a little high, that's all \u201d says. I have no problem converting \u201c. You only have to have money!\u201d<\/p>\n
Another, \u201c, says we're not happy, we prefer our little kuna\u201d. \u201cIn my opinion, a country that does not have its own currency is not a country.\u201d<\/p>\n
Majority in favor of transition<\/b><\/p>\n
45% of Croatians already had a euro account for large expenditures, but now they all need to get used to the single currency for daily purchases.<\/p>\n
Ana Kne\u017eevi\u0107 is president of the Association for the Protection of Consumers of Croatia\u2019.<\/p>\n
\u201cPrices are in euros, so it is difficult for the elderly to calculate how much they are now. We have double prices, so it's easy to compare, says \u201d.<\/p>\n
According to Eurobarometer\u2019, while the elderly are attached to the kuna, the \u2019i is in favour of adopting the euro. But more than 80 percent are afraid that prices will go up.<\/p>\n
\u201cCoffee, bread\u2026 prices are now higher than before the new year\u201d continues. \u201cPeople do not have much money to spend, food is very expensive, heating, electricity is expensive, so it is very difficult to live. Croatia is a small country, pensions are not high, you can guess how they live.\u201d<\/p>\n
Support for tourism and production<\/b><\/p>\n
Transition to the euro and entry into the Schengen area, Croatia %In addition to tourism, which constitutes 24\u2019, GDP %It is expected to increase sectors such as manufacturing, an important export sector that makes up more than 12\u2019.<\/p>\n
Kon\u010dar Group works in the fields of energy, infrastructure and electric railway vehicles. The company's production %It exports more than 60\u2019 and \u2019i goes to countries in the eurozone.<\/p>\n
CEO Gordan Kolak says that if we look at the last 21 years when we have linked our currency kuna\u201c to the euro, we cannot say that the change will be tremendous \u2019. \u201cBut since our customers will easily understand our offers, we think that the operation of the business will be much easier.<\/p>\n
\u201cWhen we talk about productivity, when we talk about modernization of production, when we talk about digitalization, all these areas are much more important to us than the euro as a currency.\u201d<\/p>\n
2020Croatian exports of goods in \u2019 %More than 70\u2019 in euros, only \u2019 was traded in US dollars.<\/p>\n
For a country where the single currency is already well integrated, it seems natural to adopt the euro.<\/p>\n
Croatia\u2019's GDP\u2019si 2022\u2019de %6 increased, but the 2023 forecast is only due in part to high inflation %1.<\/p>\n
The interview is: Governor of the Central Bank of Croatia Boris Vujcic<\/b><\/p>\n
We met with Croatian Central Bank President Boris Vujcic to get his views on the arrival of Euro\u2019.<\/p>\n
Governor of the Central Bank of Croatia Boris Vujcic:<\/strong>I'm happy that we've basically completed the project that we started five years ago. This is something that will bring more resilience to the economy. This will make the Croatian economy more attractive in terms of foreign direct investment. Transaction costs will be lower. This is also important because we are a tourist country, and as a tourist country, 70 percent of our tourists come from eurozone countries. So in many ways this is a good thing for Croatia.<\/p>\n Fanny Gauret, euronews:<\/strong>Given the current inflation in the euro area, do you think it's a good time to switch to the euro?<\/p>\n Boris Vujcic:<\/strong>I think it would be better if we could change it sooner. For a small and open economy like Croatia, being in the eurozone in times of crisis is particularly important. If you look at some of our neighbors, who are not currently members of the Eurozone, members of the European Union, Ukraine, they have experienced quite a lot of pressure in the foreign exchange market this year following the attack on \u2019. So when you look at the cost of borrowing, these costs are now for companies. %With an 8 for the household. %With a 6 %You can see it's between 9. When Croatia was in \u2019, we didn't see any pressure on the foreign exchange market, and we didn't have to react to the rate hike like we did in those countries. We are seeing the benefits of this right now because markets have priced us into the eurozone earlier this year.<\/p>\n Fanny Gauret:<\/strong>How about giving up the ability to set your own interest rates?<\/p>\n Boris Vujcic:<\/strong>Basically, the anchor of our monetary policy was the fixation of the exchange rate to the euro, and this has been the case for the last 30 years. First the German Mark \u2019na, then the Euro\u2019ya. When you peg your exchange rate to the euro and your capital flow is free, you can't really have an independent interest rate policy. So it's about losing something we didn't have to do in the beginning.<\/p>\n Fanny Gauret:<\/strong>What are the challenges of introducing large amounts of money into the Croatian economy, for example, into the real estate market?<\/p>\n Boris Vujcic:<\/strong>We see nothing in the direction of overheating of the economy. What we've seen is that, as you said, the real estate market is hot, and prices are rising. I think we will see cooling in the real estate sector next year with the increase in interest rates. What won't change is actually the external demand that is expected to increase. Now that we see that about 20 percent of real estate purchases come from abroad, we will become even more attractive.<\/p>\n Fanny Gauret:<\/strong>And finally, what are the challenges ahead?<\/p>\n Boris Vujcic:<\/strong>I don't think that's the magic thing that's going to solve the structural economic problems that we have. Now we need to focus on making structural reforms that we still need to make, with the help of a better economic environment created by entry into the euro and entry into the Schengen area.<\/p>","protected":false},"excerpt":{"rendered":" Croatian Central Bank President Boris Vujcic said the currency change would bring economic resilience.<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[158,669,504,259],"class_list":["post-2543","post","type-post","status-publish","format-standard","hentry","category-genel","tag-euro","tag-hirvatistan","tag-var","tag-will"],"_links":{"self":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/posts\/2543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/comments?post=2543"}],"version-history":[{"count":0,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/posts\/2543\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/media?parent=2543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/categories?post=2543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lojistiknakliye.com\/en\/wp-json\/wp\/v2\/tags?post=2543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}