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Croatia to apply for European Stability Mechanism membership

Author Annie Tsoneva
Croatia to apply for European Stability Mechanism membership

ZAGREB (Croatia), July 29 (SeeNews) - The Croatian government said it has decided to apply for membership in the European Stability Mechanism, an intergovernmental organization of all eurozone member states based in Luxembourg.

“Croatia will become a member of the eurozone as of January 1, 2023 and is expected to become a member of the European Stability Mechanism in the first quarter of the next year,” finance minister Marko Primorac told a cabinet meeting on Thursday. A video recording of the meeting is published on the government's website.

Earlier this month, the European Parliament approved Croatia’s entry into the eurozone as of the beginning of next year. The Adriatic country of 3.85 million people will be the 20th member of the eurozone.

The European Stability Mechanism was set up in 2012 to enable the countries from the eurozone avoid and deal with financial crises and maintain financial stability.

Croatia will pay for this membership 419 million euro ($427 million) in five annual installments and following January 1, 2035 will pay a further 236.25 million euro, Primorac added.

($=0.981 euro)