PM Nečas: euro zone can only survive if it becomes a federal economic entity
The single European currency will survive only if the euro zone becomes “a federation”, according to Czech Prime Minister Petr Nečas. In his opinion piece in Thursday’s Czech daily Lidové noviny, Mr Nečas questions whether the Czech Republic should adopt the euro under the current conditions and if so, when. The Czech Republic and the UK are the only two countries that have not joined the fiscal pact agreed at last week’s EU summit. In Thursday’s opinion piece, Mr Nečas goes on to criticize the compact by saying that while the agreed treaty was a crucial step towards federalisation, it failed to solve current problems. By joining, he said, countries gave up the right to vote on their own budgets within the EU, thereby losing sovereignty.