Governor of the Croatian central bank, Boris Vujcic, told reporters on Tuesday that Croatia's adoption of the euro would "definitely positively" impact the living standards of Croatians "in the long run," state agency Hina said on Tuesday.

Croatia will join the euro zone on 1 January 2023 after the European Union’s Economic and Financial Council (Ecofin) on Tuesday passed the last three pieces of legislation giving the final approval for Croatia’s admission to the euro zone as its 20th member country.

One of the legal acts sets the conversion rate between the euro and the Croatian kuna at 7.53450 kuna for 1 euro. The rate corresponds to the current central rate of the kuna in the exchange rate mechanism (ERM II).

“Five years ago we embarked on this journey towards the euro zone, and today the final decision to this effect has been adopted. I consider today a historic day,” Vujcic told reporters outside the central bank building in Zagreb. He said that the efforts made in the last five years on that journey have paid off.

“Being a member of the euro zone will bring Croatians and Croatian companies many benefits, and more security, and it will make the country more attractive for investments,” he explained. “In the long run this will definitely raise the living standards of citizens in Croatia,” he said.

As of 5 September, all retail businesses will be obliged to display dual prices using both the kuna and the euro.

Vujcic said that at this moment the central bank’s interest rates were higher than those of the European Central Bank. However, he said he expected that on 1 January when Croatia joins the euro zone, interest rates would be the same.

State news agency Hina did not clarify whether this means Vujcic expects euro zone interest rates to increase or Croatia’s interest rates to drop.