Sweden and Croatia are the closest to joining the eurozone, as they meet almost all criteria
European Union countries that are not part of the eurozone are not ready to introduce a currency. This was stated in the 2020 report in the European Commission’s Economic Report. At the same time, Sweden and Croatia are closest to the possible accession to the eurozone.
The report assesses the progress made by EU members outside the euro area in introducing the euro. In total, the report covers seven countries that plan to switch to the Euro: Bulgaria, Czech Republic, Croatia, Hungary, Poland, Romania and Sweden.
The report is based on the Convergence Criteria, sometimes referred to as the “Maastricht Criteria”, as set out in Article 140 (1) of the Treaty on the Functioning of the European Union (TFEU). These criteria include price stability, healthy public finances, exchange rate stability and convergence of long-term interest rates. The compatibility of national law with the rules of the Economic and Monetary Union is also considered.
according to the report:
- Croatia and Sweden meet the test of price stability;
- Bulgaria, Czech Republic, Croatia, Hungary, Poland and Sweden meet the criteria of public finance;
- Bulgaria, Czech Republic, Croatia, Hungary, Poland and Sweden meet the criteria for long-term interest rates.
No member state meets the exchange rate criterion, since none of them are members of the exchange rate mechanism (ERM II): a minimum of two years of participation in the mechanism is required to join the euro zone.
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It was previously reported that Croatia plans to convert to the euro in 2023 or early 2024. As a result of the introduction of the euro in Croatia, it will be possible to eliminate currency risks, reduce borrowing costs and increase the economy’s competitiveness overall. Around the same time, Bulgaria plans to introduce the euro.
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According to the content “Economic reality”