First of all, it should be remembered that the Euro is, especially in the Czech Republic, not only an economic but also a political project. Objectively as the estimates of economic and trade benefits for eurozone countries have dropped from initial optimistic tens of per cent to today's realistic low units of per cent.
The situation is a bit more problematic in the Czech Republic, because the European Union is generally perceived as an oppressor, imposing on us nonsensical rules, quotas and strategies harming national interests. The benefits of our membership are being downplayed and are more or less limited to the positive balance of funds sent from Europe. This implies that only parties headed for political suicide, such as the TOP 09, support eurozone entry.
Against
The first topic AGAINST entering has to do with the non-eurozone countries. Not only Greece or Portugal, but considerably larger economies, such as Spain and Italy have also been tackling major problems. The eurozone still tolerates fundamental deviations from the agreed rules.
The second risk factor is the relative instability of the eurozone, stemming mainly from the lack of a firm and transparent direction. This may have to do with the fact that Germany or France completely differ in their opinions.
The third problem is the current economic downturn. We haven’t warded it off yet and it is bound to accelerate in the future since Europe is playing the savior of the global climate. This is commendable, but Europe's competitiveness is declining compared to countries that haven’t accepted such aggressive measures.
Besides these external factors there are also internal ones, namely concerning the sustainability of public budgets in the Czechia. Not only the OECD, but also other institutions point to the need for rapid pension system and health care reform. The Czech Republic's public budgets are not able to respond adequately in the long run unless fundamental changes take place. Accession to the eurozone would also significantly weaken the already limited scope of freedom for the government and the Czech National Bank, and thus the possible reaction to negative trends in the economy. I believe that the low interest rate at the level of zero, as advocated by the ECB, would certainly not benefit us now.
For
Czechia has long complied with all the criteria for entering the eurozone, so we would surely be welcome. The entry would also weaken the perception of Czechia as a country that is only making trouble. Also Slovakia would welcome us, one of the V4 members, who needs allies in the eurozone with similar priorities. Exporters are pushing on the Euro, albeit more lukewarmly than a few years ago.
All in all, it is more about politics than economy. However, it does not begin with a debate on the adoption of the Euro, but by strong promotion of the idea of a united Europe among our fellow citizens. And once we see a change in public opinion, the adoption of the Euro will not be a major problem and we will be finally able to fulfill our commitments to our European partners.
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