Czech National Bank: Gap in economic development reason behind not yet adopting euro

The unfinished process of long-term convergence between the Czech Republic and advanced eurozone states continues to be an obstacle in the adoption of the euro, according to an analysis published by the Czech National Bank. A further risk factor stems from the difference in Czech and eurozone financial cycles and the issue of maintaining the long-term sustainability of Czech public finances due to population aging and the growth of mandatory budget expenditures. However, when it comes to the Maastricht convergence criteria for adopting the eurozone currency are basically fulfilled.

Author: Tom McEnchroe