ANALIZA NOMINALNIH KRITERIJA KONVERGENCIJE ZA UVOĐENJE EURA U HRVATSKOJ, STANJE I PERSPEKTIVE PRED SLJEDEĆI IZVJEŠTAJ O KONVERGENCIJI EUROPSKE KOMISIJE I EUROPSKE CENTRALNE BANKE 2020.GODINE
ANALYSIS OF THE NOMINAL CONVERGENCE CRITERIA FOR THE INTRODUCTION OF THE EURO IN CROATIA, STATE AND PERSPECTIVES BEFORE THE NEXT REPORT ON THE CONVERGENCE OF THE EUROPEAN COMMISSION AND THE EUROPEAN CENTRAL BANK IN 2020

Summary/Abstract: The paper analyzes the nominal convergence criteria which include price stability, public finances, exchange rate stability, long-term interest rates. Article 140 (1) of the Treaty on the Functioning of the EU requires the European Commission and the European Central Bank to report to the Council at least once every two years on the progress made by Member States in meeting their economic and monetary obligations before they enter the EMU. The last convergence report was adopted in 2018. The paper is inspired by the effort to assess the state of convergence of the Republic of Croatia and to make a relevant analysis on the next report of the European Commission and the European Central Bank that follows in the current 2020, which is the main goal of the analysis. The paper uses a quality research approach with the focus on the application of Desk analysis. In conclusion, it can be stated that the exchange rate at which the kuna will exchange for the euro will move at the exchange rate level of about 7.42195. The analysis concluded that the Republic of Croatia does not meet all 4 nominal convergence criteria prescribed by the Maastricht Treaty and does not meet all the conditions for joining the euro zone, meaning adopting the euro as a currency, given that it has not joined ERM-2.

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