With the eurozone in the midst of a “fragile” recovery and fiscal uncertainty on the home market, the Czech National Bank and Finance Ministry want to postpone setting a date for adopting the euro.
While the Czech Republic’s readiness to join the euro has improved over the past few years, the country still needs to “boost the sustainability of its public finances in relation to an aging population and increase labor market flexibility” before entering the eurozone, the national bank and finance ministry said in a statement this week. “In the eurozone itself, the recovery is fragile and the risks of deflation and another economic slump into a recession persist.” The national bank is predicting the Czech economy will grow by 2.5 percent this year.
