Economic and monetary union is a process of economic integration aimed at coordinating economic and fiscal policy, pursuing an independent common monetary policy and creating a common currency of the member states of the European union. The main goal is to merge monetary policies to create a single financial system in which interest rates are uniform and low. The common financial system encourages the reduction of exchange rate risk and increasing competitiveness through the creation of opportunities for companies to diversify financial assets and multiply external financial sources. The European central bank, as a supranational institution of the euro area, has a significant role to play in creating and maintaining general economic and monetary policy and they are aimed at maintaining price stability. Price stability is key for stimulating economic development and increasing the employment rate through attracting investment and creating new jobs. The euro was created to bring European countries closer together with the aim of achieving faster economic growth and better political cohesion. The emergence of the euro has created a recognizable symbol of European identity in the world market which gives an advantage to European companies in international trade. Prior to the introduction of the euro, it is necessary to meet the convergence conditions established by the Maastricht Treaty. The five criteria that assess a country's readiness to adopt the euro relate to the areas of price stability, sound government finances, the movement of long-term interest rates and exchange rates within the European exchange rate mechanism. Before joining the eurozone, the Republic of Croatia must meet the convergence criteria and participate in the European exchange rate mechanism for at least two years. The introduction of the euro in the Republic of Croatia will reflect on the monetary policy of the Croatian National Bank and will contribute to the economic growth and development of the country.