Czechia and Euro: a never-ending debate
Czechs are wary of the euro. Despite the fact that Czechia has been a European Union member country for more than two decades, the common European currency is viewed with suspicion by the majority of the population.
The Czech cabinet this week discussed a report by NERV—the National Economic Government Council—about the possible adoption of the euro. No decision was made. Martin Dvořák, Minister for European Affairs from the Mayors and Independents Party, is a proponent of the common European currency. In an interview with Czech Radio, he conceded that his view was in the minority but said the general outlook of his government colleagues is changing:
“Actually, there was no one left who would beat their chest or pound the table, saying ‘never the euro,’ or claiming it would threaten national sovereignty—those arguments that were once voiced. Instead, the debate has shifted to whether, now that we finally meet the Maastricht convergence criteria, apart from one, it’s time to take action."
"The NERV report clearly states that it would be optimal for the entire process to be handled by one government within a single election term. Four years would be just about the right amount of time, maybe even a bit less. And we had the feeling that yes, one government should carry it out within its term, based on its own political decision. However, it would be good if the previous government prepared everything, as they say, wrapped up in a bow, laid out in folders, with all the necessary steps ready, should the next government decide to move forward.”
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The fact remains that, according to various polls, most Czechs do not support the adoption of the euro. According to Martin Dvořák, it is the government’s role to explain why it would be beneficial for the country:
“I believe that a crucial step towards adopting the euro is to lead, expand, and deepen the public debate. This discussion wasn't happening before; now it is, and we intend to continue it for the next 10–11 months. We will organize various round tables, host conferences, attend lectures, and engage in discussions with students and citizens. I think this approach can help, among other things, to slightly increase the level of support for the euro."
"In fact, over the past year, we've seen an increase from 20% to about 25%. At this rate, we'll get there soon. Interestingly, Eurostat has already reported 49% support, so I'm not entirely sure where the methodological difference lies between their system and ours. In any case, it's a challenge for us—we have work to do, and we are committed to doing it.”
Czechs are wary of the euro because of the widespread belief that it would mean a sharp increase in the cost of living. Martin Dvořák retorts:
“If 65% of people fear that adopting the euro would sharply increase prices, the National Economic Council report clearly stated yesterday that such concerns are unfounded. Similarly, there's no risk of assuming responsibility for other countries' debts, as we would be joining at a time when such commitments have already been made. Therefore, I believe our current task is to address these misconceptions.”
However, even as Minister for European Affairs, Martin Dvořák concedes that no official government action, such as initiating negotiations with the European Commission on the conditions for potential entry, will be taken at this stage by the present government. So, besides Poland and Hungary, Czechia is still one of the few countries that joined the EU in 2004 and has not yet adopted the euro. The main opposition ANO party, which leads in all the polls, is openly against it. Thus, it does not seem likely that Czechs will pay in euros rather than crowns any time soon.
