The document highlights the benefits and costs for the Czech Republic that would stem from becoming a member of the Economic and Monetary Union. Major factors that speak in favour of euro adoption are seen in growing trade openness, strengthened financial links and ongoing process of real convergence with Eurozone countries. On the other hand a host of reasons still reduces the ability of the Czech economy to integrate smoothly into the Euro Area such as large price and wage gaps, differences in business cycles, labour market rigidities, unconsolidated public finances and some others. The emphasis is laid on the importance to fulfil Maastricht converge criteria.
The original Eurostrategy of 2003 envisaged the period 2009-2010 as the proper term in which the Czech economy could be ready to adopt the euro. The updated Eurostrategy of 2007 did not set the date for euro adoption and made this decision conditional on resolving problematic areas.
The Czech Republic’s Updated Euro-area Accession Strategy - 2007
Approved by Government Resolution No 1002 of 29 August 2007.
The Czech Republic`s Euro-area Accession Strategy - 2003
Approved by Government Resolution No 1026 of 13 October 2003.
ERM II and the Exchange-rate Convergence Criterion
Information for Government of 15 July 2003.