Proponents of the euro in Czechia running out of arguments

By admin
4 Min Read

Signatures under a petition for adopting the euro are being collected in the Czech Republic. Even though it is almost certain that the petition would not bring the euro to the country, it is good to think about what the adoption of the European common currency could mean for Czechia. The starting point for the petition could not be worse, because currently, all the relevant institutions either reject the euro or at least do not recommend its adoption in the foreseeable future.

Namely, Andrej Babiš´s government explicitly rejects the adoption of the euro. Among the main reasons why it does so, the government points out the loss of its monetary policy or the obligation to send tens of millions of CZK to the European stabilization mechanism.

The date of euro adoption in the Czech Republic is not even foreseeable beyond the current coalition´s term. At the end of last year, the Ministry of Finance and the Czech National Bank recommended that the government should not set a target date for entry into the eurozone for the time being. Both institutions marked the unfinished process of real economic convergence of the Czech Republic at an EU level as the main obstacle to the adoption of the euro.

Therefore, the petition for the adoption of the euro emerges in a situation where the topic of the common currency is “taboo” for the relevant institutions.

Moreover, it is symptomatic that the authors of the petition, which is supported by some well-known political figures, argue not only with economic reasons but, to a great extent, with political ones. This is not surprising, as more and more people now understand that the euro is primarily a political project whose main goal is to bind the EU on its way to a higher level of integration.

One of the arguments of the petitioners is in a nutshell, “We will be better”. But the idea of starting the economy is questionable. Today, the economy of the Czech Republic grows much faster than the eurozone economy and, moreover, grows more dynamically than, for example, Germany’s economy.

Even the arguments that the euro would strengthen the voice of the Czech Republic in the EU and that the country would be safer are not relevant. Supporters of the euro thus suggest that the Czech Republic is now somehow a minor member of the EU. If it were the truth, accepting the euro would not change a thing. Also, according to international studies, the Czech Republic is one of the safest countries in the world, and it is not clear how canceling the Czech crown should contribute to state security.

The above shows that the adherents of the euro adoption in the Czech Republic lack relevant arguments, and thus they must resort to poetic, political proclamations. Given that Babiš´s government has not included the euro in the program for its term in office, it is clear that the goal of the authors of the petition is mainly a political promotional event aimed at improving the image of the European Union before the elections. That is the elections in which anti-European or anti-Brussels forces are expected to succeed.

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