Wirtschaftliche Hindernisse für den Beitritt der Tschechischen Republik zur Eurozone. Economic barriers of the Czech Republic’s euro-area accession

Abstract

The date of introduction of the euro in the Czech Republic has not been set. The Czech economy fulfils the inflation and interest rate convergence criteria, as well as the government debt criterion. The exchange rate stability criterion will be most likely fulfilled. The Czech economy possesses a high level of real convergence in respect of the euro area. Due to the economic recession, the government deficit criterion will probably not be fulfilled by 2012. The date of introduction of the euro in the Czech Republic is therefore postponed to 2015 at the earliest. The main reason for adopting the single currency is the growing interconnection between the Czech and the euro area economies. The exchange rate of the Czech crown to the euro has a higher stability than the exchange rate of the euro to the dollar, however, a long-term appreciation of the crown’s exchange rate weakens the competitiveness of the Czech exporters. The financial crisis and the recession have only complicated and postponed the adoption of the euro, but they have revealed no reasons to refuse the adoption.