Czech Republic conversion not before 2015

Czechia and the Euro

Czech Republic conversion not before 2015

Postby Miguel.mateo on 22 Dec 2008, 05:35

[[Erste Group Bank AG]]

Much better positioned for early Euro adoption is the Czech Republic, but single currency is currently not at the top of political agenda. This is mainly because the country want to make structural reforms first, in order to increase flexibility and competitiveness of the economy. Positive public perception of CZK appreciation, which is a benefit of sovereign monetary policy and a more convenient way to achieve price convergence, is another reason why the Czech Republic is not in a hurry to adopt the single currency. Therefore, we do not expect that Czech Republic to join the Eurozone before 2015. Martin Lobotka, macro analyst at Ceská sporitelna: “The Czech Republic does not have any strictly set date for Euro adoption - a strategy approved in 2007 now only says that "Euro adoption date will depend on strengthening of the Czech economy's flexibility and on solving problems associated with public finance reform”. All in all, largely unreformed systems and a lukewarm reaction from a substantial part of the elite towards speedy Euro adoption lead us to forecast Euro adoption no sooner than in 2015.”


Regards,
Miguel
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Miguel.mateo
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