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Croatia to switch to euro, enter passport-free Schengen zone (aljazeera.com)

485 points by eatonphil · 1344 days ago · 507 comments on HN

Article summary

Croatia will join the eurozone on January 1, 2023, as the currency bloc's 20th member, adopting the euro currency and entering Europe's passport-free Schengen zone. The adoption of the euro is expected to help protect Croatia's economy from inflation, which has been soaring globally since Russia's invasion of Ukraine. Croatia's entry into the Schengen borderless area will also provide a boost to the country's key tourism industry. The switch to euros has been a strategic goal of Croatia's deeper EU integration.

Main themes

  • eurozone expansion
  • monetary policy
  • economic stability
  • Schengen area
  • global competition
  • brain drain
  • wealth inequality
  • EU integration

What commenters say

  • The switch to euros may carry disadvantages for average Croatian citizens, such as loss of control over monetary policy and potential for higher prices.
  • Joining the eurozone may benefit large, stable countries like Germany, but potentially harm smaller economies like Croatia.
  • The adoption of the euro may lead to a brain drain, as skilled workers move to other EU countries for better job opportunities.
  • Croatia's economy is already closely tied to the eurozone, with 80% of bank deposits denominated in euros, so joining the eurozone may be a natural step.
  • The loss of a national currency may limit a country's ability to respond to financial crises and make it more difficult to compete globally.
  • The benefits of joining the eurozone, such as increased economic stability and easier travel, may outweigh the potential drawbacks for Croatia.
  • The switch to euros may lead to increased asset prices and wealth inequality, as low interest rates benefit the wealthy.
  • Croatia's entry into the Schengen area may not necessarily provide freedom to work in other EU countries, as work visas are still required.
  • article_summary is already provided above
  • themes are provided below
  • themes are already provided below
  • comment_theses are already provided above
  • The switch to euros may have both positive and negative effects on Croatia's economy and citizens.
  • The decision to join the eurozone is a trade-off between giving up some control over monetary policy and gaining economic stability and access to a larger market.