In its annual report on EU member countries, the European Commission has written that while the Czech Republic currently certain conditions necessary for accession to the eurozone (like participation in the ERM II regime), it has to make progress on price stability. To be allowed to use the euro as its currency, it would have to keep its inflation rate to within 1.5 percent of the three best-performing EU members. The EC also wrote that a variety of legal issues would have to be rectified before the euro could be adopted. However, when it comes to long-term interest rates and keeping a lid on the country’s budget deficit, the Czech Republic is good to go.
It’s all academic, of course, since there’s no public momentum or political will pushing the country towards euro adoption. The EC went on to recommend that the Czech Republic improve its system of public tenders to ensure a higher level of competition and to enact more effective anti-corruption measures.
