Should the Czech Republic really adopt the euro?
In his New Year's speech, Czech President Petr Pavel called for concrete steps towards his country's conversion to the euro. The Czech Republic committed to introducing the single currency when it joined the EU in 2004, but according to a recent survey 63 percent of the population are against the move. The divided opinions are also reflected in the national press.
No other options
Seznam Zprávy sees no economic arguments against converting to the euro:
“Once the single currency is introduced, families won't have to change money and pay interest every time they travel abroad. Small and medium-sized enterprises would have easier access to loans in euros, which have long been offered at much more favourable interest rates than loans in Czech crowns. The promises of a miraculous strengthening of the crown have proven to be an illusion, as the euro has fluctuated between 24 and 28 crowns for fifteen years. ... In general, joining the Eurozone is certainly not the only option for the Czech Republic's further development. But at the moment the Czechs have no alternative options.”
Not what it used to be
Reflex argues that the Czech Republic's 2004 commitment to introducing the euro is obsolete:
“Back then, for example, the national debt of member states was not allowed to exceed 60 percent of their GDP. In the meantime practically all major members of the Eurozone have exceeded that limit. ... At the same time, there was a strict ban on governments borrowing from each other to solve budgetary problems. This rule was broken with the Greek debt crisis and through the ECB has now effectively become the norm. The debts of the southern countries are de facto permanently subsidised by the common monetary policy.”