news 11 Jul 13

Croatia Rules Out Joining the Euro

Croatia cannot apply to adopt the single currency for several years because of its high debt and budget deficit, the Finance Minister, Slavko Linic, said on Tuesday.

 

Boris Pavelic
Zagreb

After an EU finance ministers meeting in Brussels, Linic told journalists that Croatia could not apply to adopt the euro "because of the huge debt and the fight to lower budget deficit to under 3 per cent.

"A long period of consolidating Croatian finances and fighting for economic growth lies ahead of us," the minister added.

"Economic growth means a lot of investors and succesful privatisation," he continued.

According to European Commission analysis, Croatia's public debt could reach 57.9 per cent of GDP this year, and next year it could exceed 60 pe rcent.

The budget deficit exceeds 4 per cent right now, and is rising.

The conditions for adopting the euro are a public debt lower than 60 per cent of GDP, a budget deficit lower than 3 per cent and low inflation.

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