Croatia’s switch from the kuna to the euro could have economic benefits, but the reaction of the Croatian people is mixed. According to Eastern European correspondent Stefan Bos, Croatians fear the rise in prices and its negative consequences.
‘You can see that prices in Croatia have already gone up massively so people are worried. The expectation is that this will further fuel inflation,” says Bos.
Moreover, many Croatians are also positive about it. “Kunas they no longer have to spend, and some Croatians find it useful. After all, there is already a lot of trading and saving here in euros.’
All in all, there are mixed feelings, Bos says. ‘When you talk to small business owners, for example, they indicate that the switch hasn’t been necessary for them so quickly. According to economists, the transition is positive for the country, but this is also due to the debts that the country has and which are now obviously also being converted. This makes it more convenient to borrow in these times of crisis. Other countries like Poland or Hungary have to contend with much higher interest rates, sometimes as high as 8%.’
Schengen zone
Croatia has also become a member of the Schengen zone, which means the possibility of free movement of goods and the possibility of traveling to, for example, neighboring Slovenia. “Tourists obviously will also have to deal with the price increase, but the positive thing is that it is now possible to pay in euros everywhere in the country”.
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
