Janota: Czech euro adoption in 2014 or 2015 not realistic
Prague Daily Monitor
Prague, Aug 16 (CTK) - Adoption of the euro by the Czech Republic in 2014 or 2015 is not realistic in the current economic situation, Finance Minister Eduard Janota said on Czech Television Sunday.
The country has not disclosed the official date for its entry into the eurozone.
The Czech Social Democratic Party (CSSD) says in its election programme that it would like to introduce the euro in the country in 2014 or 2015.
Janota pointed out that prior to the adoption of the euro, a two-year stay in the ERM II, which reconciles exchange rates for countries wishing to join the eurozone, is necessary. It means that before 2012 the Czech Republic's deficit would have to make up less than 3 percent of GDP.
"If the measures (spending cuts and strengthening budget revenues) I have spoken about today were carried out, then the (budget) gap would be somewhere around 4 percent in 2012," said Janota.
All the measures would have to be taken on both the revenue and the expenditure side which does not seem realistic, he told journalists.
Czech National Bank governor Zdenek Tuma said in May that the adoption of the euro is not a cure-all solution. He said he could imagine the country sticking to the independent monetary policy for some time ahead. Structural problems in the economy will not be resolved by the adoption of the single currency, he added.