03:28Croatia: 'There may be some justified price increases' - EU trade commissioner as Zagreb switches to Euro
Zagreb was the host of 'Croatia, the 20th member of the euro area' on Tuesday after the country effectively joined the Schengen area and adopted the euro as its currency.
European Commission Vice-President Valdis Dombrovskis addressed the concerns over whether the transition to the euro will increase prices. "There may be some justified price increases, for example, those linked to higher prices for raw materials or contractual negotiations at a time of the year. And there may also be unjustified and speculative price increases, where unscrupulous operators exploit the fact that consumers are still not fully familiar with calculating prices in euros", Dombrovskis explained.
Nevertheless, Dombrovskis said the Croatian authorities have put effective measures in place to minimise the risk of unjustified price increases.
"The introduction of the single currency of the euro will also help to reduce inflation, and to reduce prices," added the European Commissioner Paolo Gentiloni, who was also present at the event.
On January 1, 2023, Croatia became the 27th country in the Schengen area. Besides adopting the euro as currency, the change also affects travelling restrictions, as EU residents will be able to enter and exit the country without a passport.
03:28Zagreb was the host of 'Croatia, the 20th member of the euro area' on Tuesday after the country effectively joined the Schengen area and adopted the euro as its currency.
European Commission Vice-President Valdis Dombrovskis addressed the concerns over whether the transition to the euro will increase prices. "There may be some justified price increases, for example, those linked to higher prices for raw materials or contractual negotiations at a time of the year. And there may also be unjustified and speculative price increases, where unscrupulous operators exploit the fact that consumers are still not fully familiar with calculating prices in euros", Dombrovskis explained.
Nevertheless, Dombrovskis said the Croatian authorities have put effective measures in place to minimise the risk of unjustified price increases.
"The introduction of the single currency of the euro will also help to reduce inflation, and to reduce prices," added the European Commissioner Paolo Gentiloni, who was also present at the event.
On January 1, 2023, Croatia became the 27th country in the Schengen area. Besides adopting the euro as currency, the change also affects travelling restrictions, as EU residents will be able to enter and exit the country without a passport.