Czech govt appoints new euro adoption official

Czech govt appoints new euro adoption official

Petr Zahradnik's appointment aims to persuade the public that joining the eurozone is in the country's best interest.

President Petr Pavel said in his New Year’s Day speech that the Czech Republic needed to take steps ‘to fulfill the pledge’ to join the eurozone. (Pool/AFP pic)
PRAGUE:
The Czech government appointed a new official to oversee efforts to adopt the euro today as the debate on joining the single currency area is heating up in the European Union member country.

The Czech Republic still uses the local koruna currency, but when it joined the EU in 2004 it vowed to adopt the single currency at some point.

Martin Dvorak, Czech minister for EU affairs, appointed today a commissioner for euro adoption in a bid to “give impetus to the euro debate”.

He said the new official, economist Petr Zahradnik, would help persuade the public that compliance with the Maastricht criteria for euro adoption was “in the interest of us all”.

The criteria set limits for inflation, government finances, the exchange rate, and interest rates for countries seeking euro adoption.

Experts say adopting the single currency in the country of 10.8 million people would help above all exporters who are the engine of the Czech economy, heavily dependent on car production.

President Petr Pavel said in his New Year’s Day speech it was “time to start taking specific steps that will lead us to fulfill the pledge” to join the eurozone.

“Despite never-ending debates on the pros and cons of the euro for a country with an open, export-driven economy, situated in the heart of Europe, the common currency is a logical future,” Pavel added.

The five-party centre-right government of conservative Prime Minister Petr Fiala pledged to meet the Maastricht criteria when it took office in 2021, without setting an euro adoption date.

Four of the parties are in favour of euro adoption, while Fiala’s right-wing Civic Democrats are torn on the step.

Fiala, who often cites the Maastricht criteria as an indicator of the country’s economic shape, has recently said the coalition has not “agreed to deal with euro adoption within this term of office” due to expire in 2025.

The eurozone currently comprises 20 nations using the single currency.

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