EU member Croatia joins the eurozone

2023 rings in change for Croatia, with the Balkan country becoming the latest to join the eurozone and the Schengen area. The open borders are welcomed on all sides, but Croatians are wary about the new currency.

In Ivana Horvat's bakery in Zagreb, prices have long been marked both in Croatian kuna and in euros. A loaf of olive bread, for instance, costs 18.48 kuna, or €2.65 ($2.80). All the same, Horvat is skeptical about the changeover to euros.

"All prices will be rounded up. Many people have mortgages and interest rates will go up. We don't know what to expect starting on January 1," she told DW ahead of the currency's introduction.

Croatians appear to be split on the issue — 55% of the country's citizens are in favor of introducing the euro, according to a European Commission survey. Almost one out of two are concerned the euro will have negative consequences, and only one out of three believe the country is well-prepared.

Meanwhile, 81% of Croats fear the introduction of the euro will lead to higher prices, a figure that has risen dramatically in recent years after the COVID pandemic dealt a severe blow to the Croatian economy, which is heavily dependent on tourism.

Skepticism is evident among the people who sell their goods at the market in Zagreb. "I am afraid of the first months in the new year. The transition period will be hard for people," said an elderly man, who declined to give his name.

Many of the street traders, most of them women, are of retirement age. They're all trying to make some extra cash to supplement their monthly pensions of around €250. Price hikes due to the new currency would hit them hardest.

Agencies