TheCzech Republic is bound to adopt theeuro in the future and join theeurozone once it satisfies theeuro convergence criteria by theTreaty of Accession after joining theEuropean Union (EU) in 2004. The country is therefore a candidate for theenlargement of the eurozone. At present, Czechia uses theCzech koruna as itscurrency, regulated by theCzech National Bank, a member of theEuropean System of Central Banks, and does not participate inEuropean Exchange Rate Mechanism II (ERM II).
Although the Czech Republic is economically well positioned to adopt the euro, following theEuropean debt crisis there has been considerable opposition among the public.[1] There is no target date by the government for joining theERM II or adopting the euro.[2]The cabinet that was formed following the2017 legislative election did not plan to proceed with euro adoption within its term,[3] and this policy was continued bythe succeeding cabinet formed after the2021 election.[4] However, by 2024, PresidentPetr Pavel had called on the government to take concrete steps in adopting the euro.[5]
TheEuropean Union membership referendum in 2003 approved the country's accession with 77.3% in favour, and in 2004 the Czech Republic joined the EU.[6]
Since joining the EU in May 2004, the Czech Republic has adopted fiscal and monetary policies that aim to align its macroeconomic conditions with the rest of the European Union. Initially, the Czech Republic planned to adopt theeuro as its official currency in 2010, however evaluations in 2006 found this date to be unlikely and the target date was postponed indefinitely.[7] In February 2007, the Finance Minister said 2012 was a "realistic" date,[8] but by November 2007 this was said to be too soon.[9] In August 2008, an assessment said that adoption was not expected before 2015 due to political reluctance on the subject.[10] However, in October 2009, the then Finance Minister,Eduard Janota, stated that 2015 was no longer realistic.[11] In June 2008, the Central bank governorZdeněk Tůma speculated about 2019.[12]
In late 2010 a discussion arose within the Czech government, partially initiated by then PresidentVáclav Klaus, a well knowneurosceptic, over negotiating anopt-out from joining the eurozone. Czech Prime MinisterPetr Nečas later stated that no opt-out was required because the Czech Republic could not be forced to join the ERM II and thus could decide if or when to fulfil one of the necessary criteria to join the eurozone, an approach similar to the one taken bySweden. Nečas also stated thathis cabinet would not decide upon joining the euro during its term.[13][14]
TheEuropean debt crisis further decreased the Czech Republic's interest in joining the eurozone.[15] Nečas said that since the conditions governing the eurozone had significantly changed since their accession treaty was ratified, he believed that Czechs should be able to decide by areferendum whether to join the eurozone under the new terms.[16] One of the government's junior coalition parties,TOP09, was opposed to a euro referendum.[17][18]
In April 2013, theCzech Ministry of Finance stated in its Convergence Programme delivered to the European Commission that the country had not yet set a target date for euro adoption and would not apply for ERM II membership in 2013. Their goal was to limit their time as an ERM II member, prior to acceding to the eurozone, to as brief a period as possible.[19] On 29 May 2013Miroslav Singer, theGovernor of theCzech National Bank (the Czech Republic'scentral bank) stated that in his professional opinion the Czech Republic will not adopt the euro before 2019.[20] In December 2013, the Czech government approved a recommendation from theCzech National Bank and Ministry of Finance against setting a formal target date for euro adoption or joining ERM II in 2014.[21]
Miloš Zeman, who waselectedPresident of the Czech Republic in early 2013, supports euro adoption by the Czech Republic, though he also advocates a referendum on the decision.[22][23] Shortly after taking office in March 2013, Zeman suggested that the Czech Republic would not be ready for the switch for at least five years.[24] Prime MinisterBohuslav Sobotka, from the Social Democrats, stated on 25 April 2013, prior to his party'selection victory that October, that he was "convinced that the government that will be formed after next year's election should set the euro entry date" and that "1 January 2020 could be a date to look at".[25][26] Shortly after being sworn into thenew Cabinet in January 2014, Czech Foreign Minister Lubomír Zaorálek stated that the country should join the eurozone as soon as possible.[27] The oppositionTOP 09 had also run on a platform in the 2013 parliamentary election, that called for the Czech Republic to adopt the euro between 2018 and 2020.[28] In line with this, the governor of theCzech National Bank, having an advisory role towards the government about the timing of euro adoption, described 2019 as the earliest possible euro entry date.[29]
In April 2014, the Czech Ministry of Finance clarified in its Convergence Programme delivered to the European Commission, that the country had not yet set a target date for euro adoption and would not apply for ERM-II membership in 2014. Their goal was to limit their time as an ERM-II member, prior to acceding to the eurozone, to as brief a period as possible. Moreover, it was the opinion of the previous government that: "the fiscal problems of the eurozone, together with continued difficulty to predict the development of the monetary union, do not create a favorable environment for the future adoption of the euro."[30]
Zeman stated in June 2014 that he hoped his country would adopt the euro as soon as 2017, arguing that adoption would be beneficial for the Czech economy overall.[31] The oppositionODS party responded by running a campaign for Czechs to sign an anti-euro petition, handed over to the Czech Senate in November 2014, but viewed by political commentators as not having any impact on changing the government's policy to adopt the euro in the medium-term without holding a referendum on it.[32]
In December 2014, the Czech government approved a joint recommendation from the Czech National Bank and Ministry of Finance, against setting a formal target date for euro adoption or joining ERM-II during the course of 2015.[33] In March 2015, the rulingCzech Social Democratic Party adopted a policy of striving to gather political support to adopt the euro by 2020.[34] In April 2015, thecoalition government announced it had agreed to not set a euro adoption target and not to enter ERM-2 until after thenext legislative election scheduled for 2017, making it unlikely that the Czech Republic will adopt the euro before 2020. In addition, the coalition government agreed that if it wins re-election it would set a deadline of 2020 to agree on a specific euro adoption roadmap.[35] In June 2015, finance ministerAndrej Babiš suggested a nonbinding public referendum on euro adoption.[36] TheAndrej Babiš' Cabinet that was formed following the2017 legislative election never planned to proceed with euro adoption within its term.[3]
Petr Fiala'scabinet that emerged from the2021 legislative election, maintained the predecessor cabinets' intention not to adopt the euro within its term, calling the adoption "disadvantageous" for the Czech Republic.[4] The position not to set a target date for euro adoption and not to apply for ERM-II membership, was however only supported by one of the five ruling cabinet parties (ODS), while all the other four parties supported to start a euro adoption process.[37] Czech PresidentPetr Pavel announced in his New Year's speech for 2024, that he supported the Czech Republic to take imminent concrete steps towards adopting the euro.[38]
In February 2024, the Czech government then appointed a commissioner for euro adoption, economist Petr Zahradnik, to oversee efforts to adopt the euro and communicate the beneficiary prospects to the Czech public.[39] Prime MinisterPetr Fiala (ODS) however immediately called a five-party coalition summit in response, as his party still disagreed with the idea to start preparing for ERM-II membership now, and hoped the government instead could negotiate and reach a new joint position on this issue - more closely aligned with the viewpoint of ODS.[40] The Czech minister for European affairs,Martin Dvořák, at the other side proposed a timeline of joining ERM-II before the general elections in late 2025 and adopting the euro on 1 January 2030.[41] The coalition summit resulted in a new common government policy on the issue, first cancelling the post of the recently appointed euro adoption commissioner, and then instead ordering an expert panel advice by October 2024 on the merits of joining ERM-II. The government will now await the report of the expert panel, before taking any further decisions about ERM-II membership or euro adoption.[42] In November 2024, Fiala announced that the decision on the eventual adoption of the euro would not be taken before the end of his government, hence postponing the decision after thenext parliamentary election, in October 2025.[43]
Selectedchain stores in the Czech Republic accept payments in euros, and return change inCzech koruna.[44]
Starting 1 January 2024, companies are legally allowed to keep their accounts and pay taxes using Euros if they choose to do so.[citation needed]
The following are polls on the question of whether the Czech Republic should abolish the koruna and adopt the euro.
| Date (survey taken) | Date (when published) | Yes | No | Undecided | Conducted by |
|---|---|---|---|---|---|
| September 2004 | October 2004 | 39% | 55% | 7% | Eurobarometer[45] |
| September 2005 | November 2005 | 33% | 58% | 9% | Eurobarometer[46] |
| December 2005 | January 2011 | 44% | 56% | 0% | STEM[47] |
| April 2006 | June 2006 | 56% | 35% | 9% | Eurobarometer[48] |
| June 2006 | January 2011 | 46% | 54% | 0% | STEM[47] |
| September 2006 | November 2006 | 44% | 47% | 9% | Eurobarometer[49] |
| November 2006 | January 2011 | 47% | 53% | 0% | STEM[47] |
| March 2007 | May 2007 | 46% | 46% | 8% | Eurobarometer[50] |
| September 2007 | November 2007 | 42% | 48% | 10% | Eurobarometer[51] |
| May 2008 | July 2008 | 42% | 48% | 10% | Eurobarometer[52] |
| May 2009 | December 2009 | 50% | 44% | 6% | Eurobarometer[53] |
| September 2009 | November 2009 | 37% | 54% | 9% | Eurobarometer[54] |
| May 2010 | July 2010 | 39% | 58% | 3% | Eurobarometer[55] |
| September 2010 | January 2011 | 30% | 70% | 0% | STEM[47] |
| September 2010 | December 2010 | 36% | 61% | 2% | Eurobarometer[56] |
| January 2011 | 2011 | 22% | 78% | 0% | STEM[47] |
| May 2011 | August 2011 | 26% | 69% | 5% | Eurobarometer[57] |
| November 2011 | July 2012 | 13% | 82% | 5% | Eurobarometer[58] |
| April 2012 | July 2012 | 13% | 81% | 6% | Eurobarometer[59] |
| April 2013 | June 2013 | 14% | 80% | 6% | Eurobarometer[60] |
| April 2014 | June 2014 | 16% | 77% | 7% | Eurobarometer[61] |
| April 2015 | May 2015 | 24% | 69% | 7% | CVVM[62] |
| April 2015 | May 2015 | 29% | 70% | 1% | Eurobarometer[63] |
| April 2016 | May 2016 | 17% | 78% | 5% | CVVM[64] |
| April 2016 | May 2016 | 29% | 70% | 1% | Eurobarometer[65] |
| April 2017 | May 2017 | 21% | 72% | 7% | CVVM[66] |
| April 2017 | May 2017 | 29% | 70% | 1% | Eurobarometer[67] |
| April 2018 | May 2018 | 20% | 73% | 7% | CVVM[68] |
| April 2018 | May 2018 | 33% | 66% | 1% | Eurobarometer[69] |
| April 2019 | May 2019 | 20% | 75% | 5% | CVVM[70] |
| April 2019 | June 2019 | 39% | 60% | 1% | Eurobarometer[71] |
| June 2020 | July 2020 | 34% | 63% | 3% | Eurobarometer[72] |
| May 2021 | July 2021 | 33% | 67% | 0% | Eurobarometer[73] |
| April 2022 | June 2022 | 44% | 55% | 2% | Eurobarometer[74] |
| April 2023 | June 2023 | 45% | 55% | 1% | Eurobarometer[75] |
| May 2023 | July 2023 | 22% | 73% | 5% | CVVM[76] |
| May 2024 | June 2024 | 49% | 50% | 1% | Eurobarometer[77] |
| February 2025 | February 2025 | 23% | 72% | 4% | NMS Market Research[78] |
| March 2025 | June 2025 | 46% | 54% | 0% | Eurobarometer[79] |
The 1992Maastricht Treaty originally required that all members of theEuropean Union join the euro once certaineconomic criteria are met. The Czech Republic meets two of the five conditions for joining the euro as of June 2022[update]; their inflation rate, not being a member of the European exchange rate mechanism, and the incompatibility of its domestic legislation are the conditions not met.
| Assessment month | Country | HICP inflation rate[80][nb 1] | Excessive deficit procedure[81] | Exchange rate | Long-terminterest rate[82][nb 2] | Compatibility of legislation | ||
|---|---|---|---|---|---|---|---|---|
| Budget deficit toGDP[83] | Debt-to-GDP ratio[84] | ERM II member[85] | Change in rate[86][87][nb 3] | |||||
| 2012ECB Report[nb 4] | Reference values | Max. 3.1%[nb 5] (as of 31 Mar 2012) | None open (as of 31 Mar 2012) | Min. 2 years (as of 31 Mar 2012) | Max. ±15%[nb 6] (for 2011) | Max. 5.80%[nb 7] (as of 31 Mar 2012) | Yes[88][89] (as of 31 Mar 2012) | |
| Max. 3.0% (Fiscal year 2011)[90] | Max. 60% (Fiscal year 2011)[90] | |||||||
 Czech Republic | 2.7% | Open | No | 2.7% | 3.54% | No | ||
| 3.1% | 41.2% | |||||||
| 2013ECB Report[nb 8] | Reference values | Max. 2.7%[nb 9] (as of 30 Apr 2013) | None open (as of 30 Apr 2013) | Min. 2 years (as of 30 Apr 2013) | Max. ±15%[nb 6] (for 2012) | Max. 5.5%[nb 9] (as of 30 Apr 2013) | Yes[91][92] (as of 30 Apr 2013) | |
| Max. 3.0% (Fiscal year 2012)[93] | Max. 60% (Fiscal year 2012)[93] | |||||||
| Czech Republic | 2.8% | Open | No | -2.3% | 2.30% | Unknown | ||
| 4.4% | 45.8% | |||||||
| 2014ECB Report[nb 10] | Reference values | Max. 1.7%[nb 11] (as of 30 Apr 2014) | None open (as of 30 Apr 2014) | Min. 2 years (as of 30 Apr 2014) | Max. ±15%[nb 6] (for 2013) | Max. 6.2%[nb 12] (as of 30 Apr 2014) | Yes[94][95] (as of 30 Apr 2014) | |
| Max. 3.0% (Fiscal year 2013)[96] | Max. 60% (Fiscal year 2013)[96] | |||||||
| Czech Republic | 0.9% | Open (Closed in June 2014) | No | -3.3% | 2.21% | No | ||
| 1.5% | 46.0% | |||||||
| 2016ECB Report[nb 13] | Reference values | Max. 0.7%[nb 14] (as of 30 Apr 2016) | None open (as of 18 May 2016) | Min. 2 years (as of 18 May 2016) | Max. ±15%[nb 6] (for 2015) | Max. 4.0%[nb 15] (as of 30 Apr 2016) | Yes[97][98] (as of 18 May 2016) | |
| Max. 3.0% (Fiscal year 2015)[99] | Max. 60% (Fiscal year 2015)[99] | |||||||
| Czech Republic | 0.4% | None | No | 0.9% | 0.6% | No | ||
| 0.4% | 41.1% | |||||||
| 2018ECB Report[nb 16] | Reference values | Max. 1.9%[nb 17] (as of 31 Mar 2018) | None open (as of 3 May 2018) | Min. 2 years (as of 3 May 2018) | Max. ±15%[nb 6] (for 2017) | Max. 3.2%[nb 18] (as of 31 Mar 2018) | Yes[100][101] (as of 20 March 2018) | |
| Max. 3.0% (Fiscal year 2017)[102] | Max. 60% (Fiscal year 2017)[102] | |||||||
| Czech Republic | 2.2% | None | No | 2.6% | 1.3% | No | ||
| -1.6% (surplus) | 34.6% | |||||||
| 2020ECB Report[nb 19] | Reference values | Max. 1.8%[nb 20] (as of 31 Mar 2020) | None open (as of 7 May 2020) | Min. 2 years (as of 7 May 2020) | Max. ±15%[nb 6] (for 2019) | Max. 2.9%[nb 21] (as of 31 Mar 2020) | Yes[103][104] (as of 24 March 2020) | |
| Max. 3.0% (Fiscal year 2019)[105] | Max. 60% (Fiscal year 2019)[105] | |||||||
| Czech Republic | 2.9% | None | No | -0.1% | 1.5% | No | ||
| -0.3% (surplus) | 30.8% | |||||||
| 2022ECB Report[nb 22] | Reference values | Max. 4.9%[nb 23] (as of April 2022) | None open (as of 25 May 2022) | Min. 2 years (as of 25 May 2022) | Max. ±15%[nb 6] (for 2021) | Max. 2.6%[nb 23] (as of April 2022) | Yes[106][107] (as of 25 March 2022) | |
| Max. 3.0% (Fiscal year 2021)[106] | Max. 60% (Fiscal year 2021)[106] | |||||||
| Czech Republic | 6.2% | None | No | 3.1% | 2.5% | No | ||
| 5.9% (exempt) | 41.9% | |||||||
| 2024ECB Report[nb 24] | Reference values | Max. 3.3%[nb 25] (as of May 2024) | None open (as of 19 June 2024) | Min. 2 years (as of 19 June 2024) | Max. ±15%[nb 6] (for 2023) | Max. 4.8%[nb 25] (as of May 2024) | Yes[108][109] (as of 27 March 2024) | |
| Max. 3.0% (Fiscal year 2023)[108] | Max. 60% (Fiscal year 2023)[108] | |||||||
| Czech Republic | 6.3% | None | No | 2.3% | 4.2% | No | ||
| 3.7% (exempt) | 44.0% | |||||||
"The conditions under which the Czech citizens decided in a referendum in 2003 on the country's accession to the EU and on its commitment to adopt the single currency, euro, have changed. That is why the ODS will demand that a possible accession to the single currency and the entry into the European stabilisation mechanism be decided on by Czech citizens," the ODS resolution says.
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