Through a continuous reform of its fiscal system (especially the tax system), the Republic of Croatia has harmonized them with those of EU countries, in keeping with European integration processes and the intention to become a full EU member. Certain differences are still in place (tax rates, certain tax incentives, benefits and exemptions), but they are soon to be harmonized as well in an ongoing tax system reform. As for the monetary segment, Croatia is already relatively well harmonized with EU standards. This harmonization is primarily based on a stable exchange rate of the national currency and low inflation. The legislation is for the most part in line with the country's endeavours in this area. Certain segments of monetary finances, especially those with long-term effects such as capital transfers etc., which are not yet adequately regulated through positive legislation, will soon have to be harmonized with the EU acquis.