Croatia: the 20th Member of the ESM
After joining the euro area on 1 January 2023, Croatia became the 20th Member of the ESM on 22 March 2023. On this date, the ESM Treaty entered into force for the new ESM Member.
Croatia is the third country to join the initial 17 ESM Members, following Latvia in 2014 and Lithuania in 2015. It will be represented in the ESM Board of Governors, the institution’s highest decision-making body, and in the Board of Directors, responsible for specific tasks mandated to it through the ESM Treaty.
Being part of the ESM adds an important layer of protection and security, which should benefit the country's economy. As an ESM Member, Croatia will gain access to the institution’s instruments.
Like other ESM Members, Croatia will be obliged to contribute to the institution’s capital. Capital contributions are based on a Member’s respective share of the EU total population and gross domestic product (GDP). Croatia will benefit from a temporary correction, whereby new ESM Members whose GDP per capita is less than 75% of the EU average make a reduced contribution to the ESM’s capital. This applies for a period of 12 years after the date of adoption of the euro.
Croatia will contribute €422 million in paid-in capital, to be made in five annual instalments. Following the end of the correction period, Croatia will contribute an additional €233 million.