Euro Brings Closure for Croatia Almost 30 Years After War

It is hard to believe that a few days ago, Croatia voted to join the Euro, almost 30 years after its country was devastated by war. With its vote, the country is once again firmly on the path to economic and political stability. Moreover, joining the euro means reaffirming its commitment to a united Europe, which is crucial to tackling the country’s challenges.

Economic benefits of joining the euro

Joining the Eurozone will bring numerous economic benefits to Croatia. For instance, the adoption of the euro will eliminate the need to change money when traveling or doing business. It will also increase the availability of products that comply with EU standards.

Using the common currency will also make it easier to invest. Interest rates will be more stable and lending will be cheaper.

Croatia’s adoption of the euro will also help to strengthen the country’s international role. A recent EC report estimates that more than half of the country’s exports are now destined for the euro area. In addition, a recent Eurobarometer poll suggests that the majority of Croatians are in favor of adopting the euro.

According to the EC, the use of the euro will lower the cost of borrowing. This will benefit consumers and businesses alike.

Smuggling route for people and drugs

The Balkan route is used for the transit of contraband drugs and people. This route leads from Serbia and Kosovo, through Slovenia, and into West Europe.

Drug trafficking has been a major problem in the Western Balkans since the 1970s. Smuggling of heroin, cocaine, marijuana, and other illicit commodities is prevalent. Small time crime gangs have established networks across the region. They are now extending their operations to Latin America and Australia.

The number of seizures of illegal drugs in Croatia has increased. In the first nine months of 2015, the Ministry of Interior reported 7,242 drug-related seizures. Marijuana and cannabis are the most commonly seized substances.

Drug charges in Croatia vary depending on the substance and amount. Charges for a first offense can be a small fine or imprisonment. For more serious crimes, the penalties may be heavier.

Inflation in the eurozone

For Croatia, the euro’s first entry into the monetary bloc was an important moment in Europe’s history. The country joined the EU nine years ago. As the European economy grew after the war, Croatia was eager to become part of the union.

While the euro has been a harbinger of global progress, it has also come with its share of pitfalls. Inflation in the 19-country currency bloc has been sky high. And with the Russian war in Ukraine worsening, the European economy is in danger of plunging into a recession.

But the European Central Bank is trying to combat soaring consumer prices. This has included a series of policy measures, including the purchase of government bonds. But if the inflation in the euro zone isn’t under control, the central bank may need to use more unconventional channels to bring it down.

Fiscal framework of the euro

The adoption of the euro has been a long process in Croatia. But now the country is close to becoming the 20th member of the single currency. This has been presented as a significant step towards ensuring economic prosperity. However, many citizens remain skeptical.

For a long time, Croatia’s economy centered on tourism. It had a strong foreign tourist industry that helped it resist Russia’s involvement in the region. Today, the sector accounts for about a fifth of the country’s GDP.

After the war for independence from Yugoslavia ended in 1995, hundreds of thousands of people were forced to leave the country. Tourism almost came to a standstill.

In the years that followed, the government rolled out a number of reforms. Many of these measures were designed to boost economic growth and combat recession. The government also took steps to address the problem of unemployment.

Reaffirming commitment to a united Europe for Bosnia and Herzogovina

The United Nations Security Council debated a draft resolution to extend the UNMIBH mission to Bosnia and Herzegovina, which was endorsed by the Russian Federation and Bulgaria. However, the United States vetoed the resolution.

During the Dayton Peace Accords, the United States and the Russian Federation were asked to ensure that the core elements of the Dayton Agreement would be upheld. This included ensuring that the multinational stabilization force (SFOR) would continue to be in place.

Although the Dayton Agreement ended the war in Bosnia-Herzegovina, the international community has remained involved in the ongoing peace process and reconstruction. Major donors have continued to assume the responsibility of delivering humanitarian assistance and reconstruction to the country.

Despite the Russian Federation’s veto, the Council did make progress on finding a solution that addresses the United States’ concerns. The draft resolution enacted by the Council, which was sponsored by Ireland and Norway, would have extended the mandate of the International Police Task Force (IPTF) and the multinational stabilization force (SFOR) until 31 December 2002.