\n<\/p>\n
“Croatia was already heavily euroised,” notes Mr Vujcic. “Corporate, government and household debts were already denominated in euros or linked to euros. Now all the income is in the same currency as the debts.”<\/p>\n
Far from causing price increases, Croatia’s chief banker believes that committing to the single currency spared the country from the worst of the inflation that has struck countries outside the eurozone over the past year. <\/p>\n
“You can see the impact of the crisis was much less severe in Croatia’s case, because markets already priced in the fact that we were getting into the eurozone,” says Mr Vujcic.<\/p>\n
Now Croatian businesses are looking forward to a boost from the euro, combined with the fact that the adoption of the single currency has coincided with Croatia’s membership of the borderless Schengen Area.<\/a><\/p>\n The latter makes life significantly easier for European tourists arriving in the country by car or coach, as they will no longer have to face interminable queues at border crossings. And euro adoption means visitors won’t have to dice with dodgy exchange rates at a hole-in-the-wall bureau de change.<\/p>\n As a result, Croatia’s tourism industry, which contributes around a fifth of Croatia’s GDP, is expected to get a boost.<\/p>\n<\/div>\n