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The Czech Republic will not set a date for joining the euro zone, the government announced on Wednesday, citing low levels of support for the idea among citizens. According to a recent poll, only one in four Czechs wants to replace the national currency, the Czech koruna, with the euro. This is reported by AFP with reference to the Czech Ministry of Finance.
“Without support, there is no point”
Minister of Finance Zbynek Stanuura stated it bluntly:
“Unless the support level reaches at least 50%, it makes no sense to give up our currency.”
In other words, the government sees no reason to force European integration in the currency area without the clear will of the majority of the population.
Why is the support so low?
A poll conducted by the STEM Institute in 2023 showed that only 25% of Czechs are in favour of the introduction of the euro. Reasons include fears of inflation, loss of control over monetary policy, and a general lack of trust in European institutions.
A split in the government
Although President Petr Pavel and representatives of the powerful automotive sector support the transition to the euro, the four-party coalition government remains divided on the issue.
When the government came to power in 2021, it announced its intention to meet the Maastricht criteria(required for joining the euro area), but this was not implemented by 2024.
So far, the Czech Republic has not withdrawn from monetary integration, but it has clearly signalled that it is not ready to join anytime soon. Given the difficult economic situation in the EU and public scepticism, the euro issue will remain a political challenge for the next governments.
