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Croatia converts currency to euros - 23rd January 2023

Croatia's become the 20th country to use the euro as a form of currency. The ex-Yugoslavian country is also the most recent nation to become part of the European border-free area – the Schengen zone.

Giving up their own currency, the 'kuna', will be safer for Croatia financially. Inflation is growing in Europe, partly because of the war in Ukraine. However, in the autumn, inflation was 3.5 per cent higher than in eurozone countries.

Joining the Schengen zone will be a benefit to the tourism industry. A fifth of the country's GDP (gross domestic product) comes from the tourist trade. Currently, cars which travel from Slovenia or Hungary face passport checks and often long queues.

At the border, a new sign now reads 'free passage' in different languages.

Reaching this point has been a difficult journey for the small nation. It was part of the former communist country of Yugoslavia for almost 50 years. Then between 1991 and 1995, Croatia fought for its independence. It was a war which killed 20,000 people and displaced hundreds of thousands.

Human rights groups are worried about Croatia's border with Bosnia. They say that border guards aren't fair and that some asylum seekers – people escaping their own countries – aren't treated kindly. However, the EU doesn't seem worried by this.

The current mood in Croatia is one of great happiness. The headline of one major newspaper was "Fantastic! Phenomenal!" Politician Davor Bozinović says the changes are the final step in proving their "European identity."

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