How is Croatia adapting to the euro?

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Croatia has been part of the European Union since 2013, having originally applied for membership in 2003. However, up until the end of 2022, Croatia’s currency was the kuna, launched in 1994 shortly after gaining independence from Yugoslavia in 1991. 

At the start of 2023, Croatia adopted the euro, and officially became part of the Schengen area. Although the euro had been used within the country before then, it merely acted as a reserve currency with many still choosing to pay in the Croatian kuna. 

But what impact has this change had on the country itself, business relations across Europe and the tourist industry? 

Fears of adopting the euro 

During the initial months of Croatia taking on the euro, there were fears among citizens that the move created dramatic price hikes due to businesses rounding-up the cost of items. But experts believed that this would have happened regardless of the move to the euro, due to an increased cost in living expenses, echoed across the continent. 

A stronger economy

Businesses have greatly benefited from the change to the euro, especially if they take part in international sales and dealings. With no need to exchange currencies, there’s no danger of volatility or fluctuations that might have otherwise meant making a loss. 

This is also true for tourists visiting other parts of the Schengen region who now don’t need to change their currency or face charges from their bank when withdrawing cash or paying for goods in a different country. 

The euro is one of the most popular traded currencies in the world and offers opportunities for both businesses and individuals looking to invest. Private investors can take advantage of their strong national currency via an established trading platform such as Tradu

Tourism benefits

Croatia has enjoyed a healthy influx of tourists for many years but, since introducing the euro, the country has seen its visitors increase even more. 

Croatia has lots to offer travellers, with stunning scenery, historical landmarks and clear waters. But its now even easier for tourists from neighbouring countries to experience the delights of the Dalmatian coast. With no need to exchange currency and visa-free travel on the doorstep, it’s easy to see why Croatia has increased in popularity among European travellers. 

And it’s great for businesses too. With tourism accounting for the highest share of GDP among EU members, there is even more significance of increased visitor numbers and travel revenue generated. 

While the acceptance of the euro hasn’t exactly been smooth sailing among citizens, the rise in the tourism sector is sure to contribute towards a healthy economy, increased job opportunities and significant overall growth.