Eurozone

Central bank governor says Croatia wants to enter eurozone as soon as possible

29.06.2013 u 15:40

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Croatia hopes to join the eurozone "as soon as possible", namely "in four or five years", Croatian National Bank (HNB) governor Boris Vujcic said in an interview with the German daily Frankfurter Allgemeine Zeitung on Saturday, which was carried by the French news agency AFP.

"We want to join the eurozone as soon as possible," although "it is too early to say when this will happen," Vujcic said ahead of Croatia's EU admission, scheduled for 1 July.

"For now we do not meet some of the admission criteria. Inflation and the budgetary deficit are too high, However, we must be sure to respect the conditions, notably to reduce borrowing to below 60% of GDP or to at least keep it at the same level," AFP cited Vujcic as saying.

Asked about the possible fear of the idea of entering the crisis-stricken eurozone, the governor recalled that this question was currently not on the agenda as Croatia would be eligible to enter the zone in four to five years.

"By then the eurozone must resolve its difficulties, otherwise we will be faced with grave problems. From that position, it is almost a luxury to be outside and be able to observe how the situation will develop,' Vujcic said.

According to AFP, Vujcic mentioned the need for a banking union and fiscal harmonisation as well as reforms in countries that have lost on its competitiveness and in which borrowing has not yet been put under control.

Croatia is scheduled to enter the bloc on 1 July as its 28th member after an 8-year process during which Zagreb had to meet the EU criteria.