FM Pusic

Croatia to introduce euro when it has competitive economy

09.05.2013 u 09:00

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Croatian People's Party (HNS) president and First Deputy Prime Minister Vesna Pusic said in Bjelovar on Wednesday that Croatia would keep the national currency and not opt for the euro until it had a competitive economy.

Asked by the press to comment on European Commission President Jose Manuel Barroso's statement today that the European monetary union, as it was created, was past its expiry date, Pusic said Croatia need not fear.

"The European Union is introducing a higher level of integration at four levels and as far as Croatia is concerned, this will be on the agenda only in five years' time. After joining the EU, Croatia will keep the kuna as a means of payment and we won't push into the euro until we have an absolutely competitive economy and until we are sure that we can prosper in such conditions."

Pusic said that in the past that was seen as a sort of trophy, to join the EU and then adopt the euro, but that it was not so. "It's better to go slow, prepare well and only then assume obligations."

She reiterated that the "amount of money at Croatia's disposal in the seven-year budget period is 15 times higher than the money Croatia could absorb from the pre-accession funds which we didn't absorb because we weren't ready. For the first two years, 1.8 billion euros is envisaged for us and the time to absorb it is limited. If we don't come up with ideas, some other countries will use that money."

Speaking to students later, Pusic said Croatian citizens were entering the EU with less euphoria but more rationally, looking at the advantages and how to use them.

She said farmers had no reason to fear from Croatia's EU accession, mentioning Polish farmers, who had been the biggest opponents to Poland's EU accession.

"Today they are the firmest core of support for Poland's EU membership. Not because someone charmed them but because assistance to them is sufficiently well organised so that they can apply as easily as possible for funds intended for farming and the dairy industry. There are also various subventions the EU approves. Through all that they have managed to turn small, semisuccessful businesses into an agriculture in which the living standards are middle class."