Prague | Czech politicians are not even thinking about adoption

Reading time: 2 minutes

Czech Prime Minister Petr Fiala said on Friday that his country did not intend to adopt the euro too soon, despite Czech economists saying the adoption of the single European currency would be an additional factor in the country’s financial stability, Euractiv.com reported.

The next country to adopt the euro is Croatia, which has recently received approval from the European Commission to join the monetary union from 2023.

“For the Czech Republic, (the adoption of the euro) is not a topic on the public agenda at the moment,” Prime Minister Fiala said.

The Czech Republic does not currently meet all the necessary conditions to join the euro area, but economists urge Prague to take the necessary steps to do so, stressing the benefits it would have from them, given rising inflation and the need for greater macroeconomic stability.

In Prague, however, the political will to move to the euro area is lacking:

“Unfortunately, today’s government will not want to adopt the euro. Thus, this becomes de facto impossible because, unfortunately, there is no political will in this regard “, wrote MEP Luděk Niedermayer, former Deputy Governor of the Czech National Bank, in an opinion piece published by the prestigious Prague economic daily Hospodářské noviny .

Niedermayer considers that the fact that the Czech Republic does not remain outside the select eurozone club is no longer beneficial for the country and calls on the government to at least decide that Prague should join the European Exchange Rate Mechanism II (ERM II), the eurozone’s antechamber. Accession to ERM II for two years is a necessary condition for subsequent full accession to the euro area.

After Croatia adopts the single European currency, only seven countries in the European Union will not be part of the eurozone. Apart from Denmark, which has a special option to give up the use of the European currency, Sweden, Poland, Hungary, Romania, Bulgaria and the Czech Republic are the only countries that continue to use national currencies.