The Czech discussion of joining the Eurozone has moved forward significantly, European Affairs Minister Martin Dvořák told Euractiv Czechia, despite having his “envoy for euro“ delegate cancelled after they were appointed without prior approval from coalition partners.
Despite 20 years of membership in the EU, Czechia has kept its national currency – the Czech Crown – but political forces in the country are calling for change.
President Petr Pavel has recently called on the government to take necessary steps for the adoption of the euro. Four parties in the ruling five-party coalition – Pirates (Greens/EFA affiliated), STAN (non-affiliated), KDU-ČSL and TOP 09 (both EPP) – are also pro-euro.
However, the fifth party – ODS (ECR) – remains sceptical.
The debate within the coalition has been fuelled by the decision of Dvořák (STAN) to appoint economist Petr Zahradník as an “envoy” for the euro without the prior approval of his coalition partners.
In response, Czech Prime Minister Petr Fiala (ODs) called an extraordinary “conciliation” coalition meeting for Tuesday. The result was the abolition of the envoy’s post. Instead, Dvořák can only appoint an “adviser” on the euro.
Additionally, the coalition promised to prepare an analysis of Czechia’s possible entry into the European Exchange Rate Mechanism II (ERM II), a precondition to adopting the common EU currency.
Despite cancelling the envoy’s position, Dvořák sees the recent developments as successful.
“I think that the outcome of yesterday’s (Tuesday’s) meeting has brought about the biggest shift on the euro issue for many years, which would not otherwise have happened,” Dvořák, a strong proponent of the euro adoption, told Euractiv Czechia.
“Our aim was to get the government to agree on some next step on the issue of euro adoption, and this has been achieved,” he added.
The analysis of the Czech Republic’s potential entry into ERM II should be prepared by October 2024. “We have specific tasks, deadlines and responsibilities, and this is a step in the right direction,” Dvořák said.
According to the minister, it is unclear when the Czech Republic will adopt the euro, as the decision will depend on future governments. The current government’s mandate ends in 2025. The decision will also be influenced by several factors, including the mood in Czech society, which is currently against adopting the EU currency.
Dvořák wants to actively explain the benefits of the euro, while his non-political “euro advisor” should contribute to a balanced and fact-based debate.
“For me personally, it would be a great pleasure if Czechia were to become part of the eurozone by 2028,” Dvořák said.
(Aneta Zachová | Euractiv.cz)
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Source: euractiv.com
