Plenkovic discusses preparations for ERM II entry

Prime Minister Andrej Plenkovic in Brussels on Friday spoke with president of the European Central Bank Mario Draghi, president of the Eurogroup Mario Centeno and president of the Eurogroup Working Group Hans Vijbrief about Croatia's preparations to enter the euro area.

Two days ago Plenkovic discussed the matter with European Commission Vice-President for the Euro and Social Dialogue, Valdis Dombrovskis.

"We basically informed them about our next steps, namely a letter of intent to enter the European Exchange Rate Mechanism (ERM II), together with the relevant action plan, which the governor of the Croatian National Bank (HNB) and finance minister will send, and that is the first step toward introducing the euro," Plenkovic said.

ERM II is a sort of waiting room in which each candidate country has to spend at least two years before joining the eurozone and Plenkovic said that Croatia could enter ERM II in about one year's time.

"I think that our arguments and key areas in which we will undertake measures to implement our strategy to introduce the euro were well received. That is what was most important for Croatia on the margins of the EU summit," the PM added.

Replying to reporters, he said that he did not expect any obstacles from Slovenia regarding Croatia's entry to ERM II.

"At this stage, I don't think so. It is important that we make reforms in areas that we have identified. That is bank supervision, better state administration and statistics-related issues. All those measures were well received and I expect that we will come across a positive reaction from our partners," Plenkovic said.

Croatia can expect to join the eurozone around 2023 at the earliest. Entry into the club of member states that use the common currency is compulsory for all member states except Great Britain and Denmark which had long before secured an exemption from this obligation.

Text: Hina

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