This contrasts with the twelve original euro area countries, which adopted the euro in a coordinated manner. The strategy set an indicative euro adoption date of — The date of euro adoption in the Czech Republic was meant to have been specified on the basis of regular assessments of the fulfilment of the Maastricht convergence criteria and the degree of economic alignment of the Czech Republic with the euro area , which have been prepared by the Czech National Bank and the Ministry of Finance every year since This assessment results in a recommendation to the Czech government on whether the Czech Republic should, or should not, join ERM II in the coming year.
The main reasons at the time were public finances, which were not compliant with the relevant Maastricht criterion, and insufficient alignment of the Czech economy with the euro area. The original indicative deadline for euro adoption — was therefore not met. The updated and still valid Eurostrategy of no longer contains any indicative target date. The degree of economic alignment of the Czech Republic with the euro area and the fulfilment of the Maastricht criteria continue to be assessed on a regular basis.
The global economic crisis and the economic situation in some weaker euro area members Greece, Ireland and Portugal have made the debate on the sustainability of the euro project increasingly relevant. The discussion of the advantages and disadvantages of adopting the euro has therefore logically become more intense in the Czech Republic as well. Given this situation, the present Czech government has not set any target date for euro adoption. It has stated, however, that it will lay the groundwork for euro adoption on condition that the euro develops as a meaningful project.
In addition, introduction of the euro will only be possible if Czech public finances are successfully consolidated. The current internal and external situation thus does allow for the decision on the date of adoption of the euro in the Czech Republic to be made in the near future.
The adoption of the euro in the Czech Republic will therefore depend not only on the implementation of necessary reforms, but also to a large extent on how the euro area copes with the present challenges affecting the fundamentals of its operation. We are constantly striving to improve this website for our users. For this purpose, we are using technical and anonymized statistical cookies.
The establishment and stages of Economic and Monetary Union prior to the introduction of the euro The push for integration which started in Western European countries after World War II did not originally involve economic and monetary policy. Stronger integration in the s, the Maastricht Treaty The idea of more intensive monetary integration was tabled in the late s after the adoption of the Single European Act , which set a course towards full integration of the single internal market.
Convergence criteria To check whether the conditions had been created for moving to Stage Three of Economic and Monetary Union EMU , involving the actual introduction of the single currency, the Treaty laid down convergence criteria.
Stability and Growth Pact At the time the Maastricht Treaty — which, among other things, stipulated an excessive deficit procedure — entered into force, most EU countries were not compliant with the two criteria limiting excessive deficits. The changeover to the euro As expected, an extraordinary EU summit held in early May approved the membership of 11 countries in the euro area commonly called the Eurozone , although a more tolerant interpretation of the Treaty was applied in the case of compliance with the fiscal criteria in some countries.
Current composition of the euro area The twelve countries that adopted the cash euro in were joined by Slovenia in , Malta and Cyprus in , Slovakia in , Estonia in and Latvija in The economic crisis and the search for new ways forward The first ten years of the euro can be described as a period of relative calm, despite gradually growing imbalances between individual countries.
The financial and economic crisis and its implications for the euro area The outbreak of the financial and economic crisis was a turning point in the development of EMU. Remedial measures At the March meeting of the European Council a discussion took place about the need for longer-term measures to correct the fiscal situation and imbalances in the euro area.
The Euro Plus Pact The original informal French-German proposal to establish a Competitiveness Pact was replaced by a joint proposal of the President of the European Council and the President of the European Commission, which was subsequently modified into the final form of a Pact for the Euro agreed by top euro area representatives at a summit on 11 March It is not legal for exchange offices to charge any commission on foreign exchange transactions, and a printed receipt must be provided for each transaction.
If you feel that the rate you have received is not fair, you can revoke the transaction within three hours. More information here. Although the five parties forming coalition are generally in favour of the eventual adoption of the euro, it has not been high on their agenda for the next four-year term.
The Czech fiscal gap is seen by the ministry at 7. There are set protocols that need to be achieved, namely price stability, tight control of public finances and exchange rate stability by way of participation with the Exchange rate Mechanism for at least two years.
The entry level bar is high, and membership is further debated when one views examples on how EUR-USD is affected , for instance. At the moment, the Czech Republic and the US enjoy a mutually beneficial trading relationship as the dollar is stronger than the koruna.
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