Abstract

The date of introduction of the euro in the Czech Republic has not been set. The
Czech economy fulfils the inflation and interest rate convergence criteria, as well as
the government debt criterion. The exchange rate stability criterion will be most
likely fulfilled. The Czech economy possesses a high level of real convergence in
respect of the euro area. Due to the economic recession, the government deficit
criterion will probably not be fulfilled by 2012. The date of introduction of the euro
in the Czech Republic is therefore postponed to 2015 at the earliest. The main
reason for adopting the single currency is the growing interconnection between the
Czech and the euro area economies. The exchange rate of the Czech crown to the
euro has a higher stability than the exchange rate of the euro to the dollar, however,
a long-term appreciation of the crown’s exchange rate weakens the competitiveness
of the Czech exporters. The financial crisis and the recession have only complicated
and postponed the adoption of the euro, but they have revealed no reasons to refuse
the adoption.