The European Commission and euro zone countries on Friday signed a Memorandum of Understanding (MoU) with Croatia "outlining the practical steps" that would allow Croatia to begin minting its own euro coins "when it receives the go ahead to join the euro zone," state agency Hina informed the public on Friday.

The memorandum, signed in Brdo pri Kranju, Slovenia, regulates issues related to the necessary preparations ahead of and up to the actual minting of euro coins, including the acquisition and production of minting tools and coin test runs.

The MoU was signed by Executive Vice-President Valdis Dombrovskis, European Commissioner for Economy Paolo Gentiloni, President of the Eurogroup Paschal Donohoe and governor of Croatia’s central bank (HNB), Boris Vujcic.

Croatia can now launch preparations, that is, “start making a detailed scenario for transition to the euro, start arrangements for the distribution of euro coins and the withdrawal of the Croatian kuna during the changeover, and the selection of its euro coin national side designs,” HNB said in an unsigned statement.

Croatia can also “start technical preparations for the common side of the euro coins, begin preparing mints for euro coin production and buying and making tools necessary to make coins as well as start with coin test runs and start making euro coins.”

The EC, too, reported about the signing of the document, citing Executive Vice-President Dombrovskis as saying that the EC continued to support Croatia in its efforts to join the euro area, from which, he said, it stands to benefit greatly.

“However, before it can adopt Europe’s single currency, Croatia must first meet all Maastricht criteria and continue to make progress on technical preparations,” he said.

Commissioner Gentiloni welcomed Croatia’s commitment to joining the euro area, stressing that it “belonged there,” Hina reported. He said that the EC would continue supporting Croatia in its preparations and efforts to meet the convergence criteria.

Croatia is still not a member of the euro area but the kuna has been part of the exchange rate mechanism (ERM II) since 10 July 2020.