Kolinda Grabar Kitarovic announces Croatia’s entry into eurozone by 2020

Kolinda Grabar Kitarovic announces Croatia’s entry into eurozone by 2020

Zagreb, April 29, 2015/ Independent Balkan News Agency

By Marija Avramovic

President Kolinda Grabar Kitarovic said in an interview on Wednesday for Bloomberg that Croatia would be able to adopt the euro by 2020, after overcoming the six-years long recession.

She once again took the opportunity to attack the government of Zoran Milanovic because of the lack of commitment, as she put it.

Bloomberg points out that Croatia is yet to exit the record long recession which from 2008 to now has resulted in a cumulative decline of BPD by a staggering 12%.

During this period, among EU countries, only Greece and Cyprus had a decline larger than Croatia’s.

“I believe that we will adopt the euro in the next five years. It is very important for Croatian economy because of its strong associations with the economies of the European Union”, Grabar Kitarovic explained.

The Croatian government is not as enthusiastic as the president when it comes to the euro, according to Bloomberg, adding that her role is mainly ‘ceremonial’, hinting that it is not within her powers.

Euro adoption is one of several points of disagreement between Grabar-Kitarovic, who came from the main opposition party Croatian democratic union, and Prime Minister Zoran Milanovic who is also the president of ruling Social democratic party.

Deputy Prime Minister Branko Grcic said in an interview last week that the government was not prepared to set a date for euro entry because of fiscal difficulties which Croatia is still facing.

Three months into her five-year term, Kitarovic said she has met with executives, union leaders and investors to rebuild trust in the economy, damaged by the global crisis and later by a bloated public sector and regulatory uncertainties that have kept investors only close by.