During all activities related to the introduction of the euro, the key principle is consumer protection. The main consumer protection mechanisms in the process of introducing the euro are:

• dual display of prices
• application of a fixed conversion rate when recalculating
• supervision of merchants and service providers
• monitoring the price trends of the most commonly used products on the market.

The supervisory bodies prescribed by the Law on the introduction of the euro as the official currency in the Republic of Croatia will implement the Law and prescribe misdemeanor provisions for irregularities and illegalities that they determine during supervision.

Consumer protection is of great importance

On January 1, 2023, Croatia will join the 19-member family of European countries that use the euro, and thus the eurozone will have 20 members from 2023. For now, the euro is one of the two most visible signs of the integration of European countries, while the other is the unhindered movement within the countries that make up the Schengen area.

The goal is to deepen relations between member states and the free movement of people, goods, services and capital. Overall, the euro contributes to more stable economic opportunities and growth, greater investment and new jobs. The process and procedure of introducing a new currency is one of the most technically complex steps in the history of the modern Croatian state.

The procedure for the introduction of the euro

In the process of introducing the euro, several principles are applied. The first is the principle of consumer protection, and it is important to point out that price conversion is carried out free of charge, using a fixed conversion rate of HRK 7.53450 for one euro.

The consumer must be provided with timely, clear and accurate information on the procedure and rules for exchanging kuna cash for euro cash, as well as all essential elements of recalculation and presentation of prices and other monetary statements of value. Fortunately for consumers, the law expressly prohibits unjustified price increases. When introducing the euro, it is forbidden to increase the price of goods or services to consumers without a justified reason.

The period of dual circulation is upon us

From December 1, 2022, citizens will be able to purchase sets of euro coins in banks, Fina and Croatian Post offices. For HRK 100, they will receive a package of EUR 13.27, and they must not use this money before January 1, 2023. The dual circulation period lasts for two weeks after the introduction of the euro. This means that when paying in cash, any remaining amount will be returned in euros.

When paying salaries and pensions, employers will be obliged to convert the amount of salary and other benefits into euros. During the period of dual reporting of prices, from September 5 of this year to December 31, 2023, wages and all payments by the employer will be reported in kuna and euros.

Kuna loans will be automatically converted into euros on January 1st, and there will be no changes for kuna loans with a currency clause in euros, since almost all parameters (annuities and installments) are determined in euros anyway. On January 1, kuna savings will automatically be converted into savings in euros, calculated at a fixed conversion rate.

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Dana source: www.euro.hr