Euro_logo By SergioGeorgini at English Wikipedia

Croatia Not Ready to Join ERM or Adopt Euro, says ECB

According to Reuters news agency, discussions took place on the 11th May regarding whether or not Croatia should join the ERM. Joining the Exchange Rate Mechanism is the precursor to taking up the Euro as the main currency and prepares a country for the move to the Euro – Croatia currently does not use the Euro and since it joined the EU in 2013, its traditional, national currency, the “Kuna” has remained in place.

Boris Vujcic, the EU central bank governor said on Thursday that moves to join the Exchange Rate Mechanism should only begin once Croatia leaves the European Union’s Excessive Deficit Procedure. Taking a break from the European Bank for Reconstruction and Development’s annual meeting in Cyprus Vujcic said to Retuters “”It’s first things first. Before exiting EDP it’s not the time to start discussions on joining ERM-2″. He continued “(We’re) looking forward to another good budget, and the debt-to-GDP ratio will open the space for the start of talks on joining ERM-2”.

This will be good news for holiday makers who currently reap the benefits of Croatia not being having adopted the Euro as their national currency. Croatia is often hailed as one of the chepaer holiday destinations day to day compared to Euro destinations where daily items, eating out etc are often reported as being more expensive. Croatia exploded on to the tourist scene in recent years and is one of Europe’s most popular destinations currently.

Image © SergioGeorgini at English Wikipedia, CC BY 2.5,

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