Czech euro coins
Encyclopedia
The Czech Republic
has been a member of the European Union
since May 2004. Its currency
, the Czech koruna
, is not currently participating in ERM II
.
as its official currency in 2010, however evaluations in 2006 found this date to be unlikely. In February 2007, the Finance Minister said 2012 was a "realistic" date. but by November 2007 this date was said to be too soon. In August 2008, an assessment said that adoption was not expected before 2015 due to political reluctance on the subject. However, in October 2009, the finance minister of the time, Eduard Janota
, stated that the 2015 target is no longer realistic. Central bank governor Zdeněk Tůma
even speculated about 2019.
Currently, a competition for the design of the national sides of Czech euro coins is under consideration, and as such the design has not been decided.
In late 2010, a discussion arose within the Czech government about negotiating an opt-out from joining the Eurozone. This discussion was partially initiated by Euro-sceptic President Václav Klaus
. Prime Minister Petr Nečas
later stated that no opt-out is needed because the country cannot be forced to join the ERM II mechanism. As a result, it will itself decide when or if to fulfill one of the obligatory criteria to join the Eurozone, which is an approach very similar to that of Sweden. Nečas also stated that his cabinet
will not decide upon joining the euro during its term which is due to expire in 2014. The Czech Republic therefore will not be able to become a member of the Eurozone sooner than 2017. During the European sovereign debt crisis Nečas said that the conditions governing the euro had changed sufficiently that Czechs should be consulted by referendum
before joining the eurozone.
A survey held in January 2011 found only 22% (6% "definitely yes", 16% "rather yes") of the population being in favor of adopting euro while 78% (43% "definitely not", 35% "rather not") being against it.
originally required that all members of the European Union
join the euro once certain economic criteria
are met. Czech Republic meets 3 out of the 5 criteria.
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
has been a member of the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
since May 2004. Its currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
, the Czech koruna
Czech koruna
The Czech koruna or Czech crown has been the currency of the Czech Republic since 8 February 1993 when, together with its Slovak counterpart, it replaced the Czechoslovak koruna at par....
, is not currently participating in ERM II
European Exchange Rate Mechanism
The European Exchange Rate Mechanism, ERM, was a system introduced by the European Community in March 1979, as part of the European Monetary System , to reduce exchange rate variability and achieve monetary stability in Europe, in preparation for Economic and Monetary Union and the introduction of...
.
Adopting the euro
Initially, the Czech Republic planned to adopt the euroEuro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
as its official currency in 2010, however evaluations in 2006 found this date to be unlikely. In February 2007, the Finance Minister said 2012 was a "realistic" date. but by November 2007 this date was said to be too soon. In August 2008, an assessment said that adoption was not expected before 2015 due to political reluctance on the subject. However, in October 2009, the finance minister of the time, Eduard Janota
Eduard Janota
Eduard Janota was a Czech economist. Between 2009 and 2010, he served as the Minister of Finance in the caretaker government of Jan Fischer.On 20 May 2011, he died at age 59, while playing tennis.- References :...
, stated that the 2015 target is no longer realistic. Central bank governor Zdeněk Tůma
Zdenek Tuma
Zdeněk Tůma is a Czech economist and a former Governor of the Czech National Bank since 1 December 2000. He was confirmed by President Václav Klaus for another six-year term on 11 February 2005. Tůma resigns as of 30 June 2010...
even speculated about 2019.
Currently, a competition for the design of the national sides of Czech euro coins is under consideration, and as such the design has not been decided.
In late 2010, a discussion arose within the Czech government about negotiating an opt-out from joining the Eurozone. This discussion was partially initiated by Euro-sceptic President Václav Klaus
Václav Klaus
Václav Klaus is the second President of the Czech Republic and a former Prime Minister .An economist, he is co-founder of the Civic Democratic Party, the Czech Republic's largest center-right political party. Klaus is a eurosceptic, but he reluctantly endorsed the Lisbon treaty as president of...
. Prime Minister Petr Nečas
Petr Necas
Petr Nečas is the current Prime Minister of the Czech Republic and Leader of the Civic Democratic Party. He was sworn into office on 28 June 2010....
later stated that no opt-out is needed because the country cannot be forced to join the ERM II mechanism. As a result, it will itself decide when or if to fulfill one of the obligatory criteria to join the Eurozone, which is an approach very similar to that of Sweden. Nečas also stated that his cabinet
Petr Nečas's Cabinet
- Government ministers :- References :*...
will not decide upon joining the euro during its term which is due to expire in 2014. The Czech Republic therefore will not be able to become a member of the Eurozone sooner than 2017. During the European sovereign debt crisis Nečas said that the conditions governing the euro had changed sufficiently that Czechs should be consulted by referendum
Referendum
A referendum is a direct vote in which an entire electorate is asked to either accept or reject a particular proposal. This may result in the adoption of a new constitution, a constitutional amendment, a law, the recall of an elected official or simply a specific government policy. It is a form of...
before joining the eurozone.
A survey held in January 2011 found only 22% (6% "definitely yes", 16% "rather yes") of the population being in favor of adopting euro while 78% (43% "definitely not", 35% "rather not") being against it.
Status
The Maastricht TreatyMaastricht Treaty
The Maastricht Treaty was signed on 7 February 1992 by the members of the European Community in Maastricht, Netherlands. On 9–10 December 1991, the same city hosted the European Council which drafted the treaty...
originally required that all members of the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
join the euro once certain economic criteria
Convergence criteria
The euro convergence criteria are the criteria for European Union member states to enter the third stage of European Economic and Monetary Union and adopt the euro as their currency...
are met. Czech Republic meets 3 out of the 5 criteria.
| | Convergence criteria | |||||
|---|---|---|---|---|---|
| | Inflation rate Inflation rate In economics, the inflation rate is a measure of inflation, the rate of increase of a price index . It is the percentage rate of change in price level over time. The rate of decrease in the purchasing power of money is approximately equal.The inflation rate is used to calculate the real interest... 1 | | Government finances | | ERM II European Exchange Rate Mechanism The European Exchange Rate Mechanism, ERM, was a system introduced by the European Community in March 1979, as part of the European Monetary System , to reduce exchange rate variability and achieve monetary stability in Europe, in preparation for Economic and Monetary Union and the introduction of... membership | | Long-term interest rate Interest rate An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for... 2 |
||
| annual government deficit to GDP Gross domestic product Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living.... | gross government debt Government debt Government debt is money owed by a central government. In the US, "government debt" may also refer to the debt of a municipal or local government... to GDP Gross domestic product Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living.... |
||||
| Reference value 3 | max 1.0% | max 3% | max 60% | min 2 years | max 6.0% |
| 0.3% | 5.2% 4 | 35.4% | Not yet a member | 4.7% | |
| 1 No more than 1.5% higher than the 3 best-performing EU member states. 2 No more than 2% higher than the 3 best-performing EU member states. 3 Values from May 2010 convergence report of the European Central Bank, to be updated at least every two years. 4 Negative value is a surplus. |
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