Czechia Will Not Adopt Euro Anytime Soon, Says PM

The Czech Republic has no plans to adopt the euro anytime soon, Prime Minister Petr Fiala said amid rising concerns from Czech economists.

As Croatia was recently given the Commission’s go-ahead to adopt the euro in 2023, the Czech Republic has decided to remain outside the single currency.

“For the Czech Republic, (euro adoption) is not a topic on the table at the moment,” Fiala said on Friday (24 June).

Though the Czech Republic does not currently meet all conditions needed to join the eurozone, experts are calling for the country to accept the common currency amid inflation to achieve greater stability and have a say in the eurozone’s decision-making process.

The political will for such a move is lacking, however.

“Unfortunately, today’s government will not accept the euro. It is de facto impossible to do so in time, and unfortunately, there is no political will to do so,” MEP and former vice governor of the Czech National Bank Luděk Niedermayer wrote in an op-ed published by Hospodářské noviny.

Niedermayer believes it is no longer beneficial for the Czech Republic to stay outside the euro club and calls on the government to at least decide to join the European Exchange Rate Mechanism II (ERM).

Membership in ERM II for two years is a necessary condition for joining the eurozone.

With Croatia joining the eurozone, only seven EU countries are not part of the euro area. Apart from Denmark, which has an opt-out for the euro, Sweden, Poland, Hungary, Romania, Bulgaria and Czechia are the only countries to keep using their national currencies.