Why is Croatia making the switch?
Political and Economic Benefits
Being part of the EU has economic benefits, thanks the European Central Bank’s monetary authority, including access to ECB liquidity – which means potential bailout in times of crisis.
Being part of the Eurozone also means lower interest rates and better credit ratings, and should also make payments easier and cheaper: all of which Croatia hopes will make the country more attractive to investors.
The move will also trim about 1.2 billion Kuna of foreign-exchange costs outside of tourism per year.
Travel and Tourism Benefits
Tourism generates a fifth of gross domestic product in Croatia – the economy is highly dependent on foreign travellers. The move to the EUR will also mean Croatia will officially become part of the visa-free Schengen Area, which they hope will boost the tourism economy even further.