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Croatia declares its intention to join the euro area

Inicio » EU News » Croatia declares its intention to join the euro area

16-07-2019

In the margins of the Eurogroup meeting, representatives of the eurozone member states, the European Central Bank (ECB) and Denmark met in the presence of the European Commission and Croatia to discuss prospects of Croatia’s participation in the ERM II.

Croatia’s intention to join ERM II shows that the eurozone is a solid anchor of stability and growth in Europe that continues to attract new members.

The ECB and the Commission will monitor the effective implementation of these commitments acting within their respective areas of competence as provided for by the Treaties and secondary legislation. Once they have provided a positive assessment, a decision will be taken by the ERM II parties on the formal application of the Croatian authorities for ERM II participation. The decision will be linked to the ECB decision on close cooperation, in full respect of the conditions specified in the legal framework. This would imply that Croatia simultaneously joins ERM II and the Banking Union.

In line with the relevant secondary legislation, Croatia will also participate in the Single Resolution Mechanism (including the Single Resolution Fund) from the date of entry into force of the ECB decision on close cooperation. Therefore, as from that date Croatia should be subject to the obligations stemming from the Intergovernmental Agreement on the transfer and mutualisation of contributions to the Single Resolution Fund, notably the obligation to transfer those contributions to the Single Resolution Fund in accordance with the relevant provisions thereof. To these effects, Croatia is expected to take all the necessary steps in order to ratify and deposit its instrument of ratification in due course before the decision on close cooperation enters into force.

In line with past practice, Croatia is also expected to take further commitments at the moment of joining ERM II with the aim of achieving a high degree of sustainable economic convergence by the time the euro will be introduced.

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Next International EU-Japan Summit State aid: €385 million support for production of electricity from renewable sources in Lithuania Eurobarometer 479 in all the EU Member States that have yet to adopt the euro State aid: Commission approves prolongation of Greek bank guarantee scheme lingotes de oro apiladosAs market matures, Central Banks conclude that a formal gold agreement is no longer necessary

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