Government steers clear from euro commitment

The Czech government on Wednesday refused to fix a target date for joining the single European currency the euro. It also said that it would not seek next year to take a preliminary step towards that by joining the Exchange Rate Mechanism. This sets a narrow band within which the Czech crown could fluctuate against the euro. The twin moves leave the government’s stance towards euro adoption unchanged. Under the 2004 entry terms to the European Union the Czech Republic is obliged to join the euro zone when it is ready. A joint report on Czech moves to achieve membership criteria by the Czech National Bank and Ministry of Finance said the current situation was not conducive to euro adoption.

Author: Chris Johnstone