Croatia's money changes to the euro - 23rd January 2023

Croatia's now the 20th country to use the euro, changing from its Croatian currency, the 'kuna'. It's also the latest country to join the Schengen zone, Europe's border-free area.

With rising costs, it's hoped that the change to the euro will make the country safer. This is because inflation's higher in non-euro countries than in eurozone countries. In November, it was 3.5 per cent higher in Croatia.

It's thought that becoming a Schengen member will be good for the country's growth. It will help Croatia's tourist industry to develop. This is already 20 per cent of the country's economy. Now, cars from Slovenia or Hungary can simply cross the border. They don't need to stop for passport checks or to wait in long lines.

It hasn't been easy for the small country. After living for 50 years in communist Yugoslavia, Croatians fought a war of independence. 20,000 died and thousands lost their homes. Today, their border with Bosnia is very strong. It's said the border guards are sometimes unkind. But the EU seems to be pleased with Croatia's systems.

In Croatia, the mood is a very happy one. One major headline in a national newspaper said: "Fantastic! Phenomenal!"

The country now feels completely European.