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Transition to the Euro/ Prices rise in Croatia, the government's ultimatum to businesses

2023-01-10 20:28:57Kosova&Bota SHKRUAR NGA REDAKSIA VOX
Transition to the Euro/ Prices rise in Croatia, the government's ultimatum
Euro "flys" prices in Croatia, the government intervenes

In Croatia, which joined the Eurozone on January 1 with the adoption of the common currency, there is a sharp increase in prices, especially for food products and services.

The increases have been deemed unjustified by the government, which has warned of an intervention in the coming days.

Most of the increments are related to rounding which in many cases far exceeds the conversion logic. There are price increases ranging from 5 to 20 percent compared to prices before the introduction of the European common currency. For this reason, many merchants, restaurants, and even some supermarket chains have been accused by the press of speculating.

The anger of the citizens has also exploded on social networks, denouncing, among other things, the increase in the price of bread and butter up to 30%.

Prime Minister Andrej Plenkovic accused "a section of traders and entrepreneurs of taking advantage of the switch from the Croatian kuna to the euro with this irresponsible behavior," warning of possible intervention if the situation is not normalized by Friday.

Plenkovic said the government has strong tools "that it will not hesitate to use." Possible interventions include raising taxes, removing gas and energy subsidies or even freezing prices for hundreds of items at December levels.

In addition to joining the Eurozone, Croatia – the last country to join the EU in July 2013 – also joined the Schengen area for free movement in Europe in early 2023.


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