New EU state joins Eurozone TODAY at dangerous moment as Euro slumps to record-low levels

Russian gas 'could' be used to 'derail European Unity' says expert

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At a time the Eurozone is facing rising levels of inflation and stagnating growth, the decision to join the EU’s common currency may come as a surprise. But Croatian deputy prime minister and finance minister Zdravko Maric is adamant the move could benefit both his country and the eurozone as a whole.

Speaking to Politico, he said: “At the end of the day, we believe that euro benefits are much bigger than the costs, much longer-term than the costs.”

Dismissing warnings Croatian shops could take advantage of the currency change to increase prices, he said: “When you do the changeover, when you round the number to the upper level, you bring certain contribution to inflation.

“It is our responsibility to prevent any further contribution of euro introduction towards inflation.”

The decision comes as Mr Maric is stepping down and retiring from politics altogether on Friday.

His replacement, Marko Primorac, will have to take the baton of running the changeover and adhere to ECB policy.

The euro hovered close to a 20-year low near parity to the dollar on Tuesday amid concerns that an energy crisis could tip Europe into recession, while the US Federal Reserve continues to aggressively tighten policy to curb inflation.

More to follow…

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