Croatia targets ERM II entry by mid-July - PM Plenkovic

"I am pleased to say that Croatia has fully implemented all 19 measures within the set deadline," Plenkovic said in a statement on Thursday.

He added that the country will send a letter to inform the European Commission on the implementation of the Action Plan reform measures, along with a request for a formal evaluation of the implementation of the measures. It will then wait for confirmation by the European institutions that it can enter the ERM II, after which it will submit a request to do so, Plenkovic explained.

In order to apply for a eurozone membership, Croatia needs to spend some 2.5 years in ERM II and meet all Maastricht criteria for the euro convergence, he noted.

In July 2019, the authorities in Zagreb sent to the European Commission a letter of intent to join the ERM II, targeting entry in mid-2020.

The mechanism ensures that exchange rate fluctuations between the euro and other EU currencies do not disrupt economic stability within the single market. It also helps non euro-area countries to prepare for joining the euro area.

In November 2019, prime minister Plenkovic said that Croatia could become a eurozone member at the beginning of 2023 or a year later.