What is the connection between Croatia’s preparations for ERM II entry, establishment of supervisory close cooperation with the ECB and Croatia joining the Single Resolution Mechanism?

Published: 3/6/2020

The establishment of close cooperation between the Croatian National Bank (CNB) and the European Central Bank (ECB) is one of the prerequisites for entering the ERM II (Exchange Rate Mechanism II). The introduction of the euro is Croatia’s strategic goal, and entry into the ERM II, along with close cooperation, which is to be established by entering the ERM II, are the first formal steps in that direction.

On 27 May 2019, Croatia sent a formal request for the establishment of close cooperation with the CNB. On 10 July 2020, the European Central Bank adopted the decision on the establishment of close cooperation with the Croatian National Bank, and since 1 October 2020, Croatia has become a participant in the Single Supervisory Mechanism (SSM).

Simultaneously with the establishment of close cooperation with the ECB and joining the Single Supervisory Mechanism, our country has become a full member of the Single Resolution Mechanism in accordance with Regulation 806/2014.