The Czech National Bank (CNB) has recommended that the government not set a date by which the country should aim to replace its currency with the euro. It came to the recommendation in tandem with the Ministry of Finance based on the argument that the Czech economy is not yet in step with the Eurozone economy. While the country’s economic output has risen substantially in recent years, the CNB warns that it still lags too far behind the EU average in too many indicators. In addition, its inflation rate is among the highest in the union and does not meet the EU’s price stability criteria. Although the country’s public finances have been strictly in line with recommendations until recently, the coronavirus pandemic has resulted in enormous public spending that will cause a significant deficit. Prime Minister Andrej Babis said the government would not be taking any substantial new efforts to win entry to the eurozone.
