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Croatia converts currency to euros - 23rd January 2023
Dropping its 'kuna' as the currency, Croatia has now become the 20th country to adopt the euro. The former Yugoslavian country is also the latest to join Europe's border-free Schengen zone, completing the country's integration into wider Europe.
The Croatian government hopes the euro will ensure financial stability for the country at a time of rising inflation. Since Russia's invasion of Ukraine, non-euro countries have experienced higher inflation than euro countries. Croatia's inflation rate was 3.5 per cent greater than in eurozone countries in November.
Many believe membership of the Schengen zone will also improve Croatia's tourism industry. Currently, 20 per cent of the Adriatic country's GDP comes from this sector and most visitors travel in by car. Previously, travellers were required to wait in long queues at border crossings from Slovenia and Hungary to get their passports checked. Now unnecessary, a new border sign reads 'free passage' in Croatian, English, German, and Slovenian.
Croatia's journey hasn't been the easiest. For almost 50 years, Croatians lived under communist rule in Yugoslavia and from 1991 until 1995, Croatia fought a bitter war of independence, when 20,000 people were killed and hundreds of thousands were forced to flee.
Despite its problematic history, the country has developed rapidly in the past 20 years and in 2013, Croatia became the newest EU member.
Human rights groups have raised concerns over Croatia's border with Bosnia. Activists say migrants and asylum seekers have been mistreated by Croatian border guards. Croatia's ‘tough' border control doesn't appear to be a problem for the EU. The organisation rejected Romania's and Bulgaria's applications to join Schengen after concerns relating to weak immigration policies.
In Croatia, the tone is celebratory. One newspaper's headline read: "Fantastic! Phenomenal!" and interior minister Davor Bozinović said that opening doors to a "borderless Europe" was the last stage in confirming their "European identity."
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