The Czech Republic is skeptical about adopting the euro
In the EU, the Czechs have recently come to be regarded as staunch Euroskeptics and opponents of European integration. Judging by the results of regular opinion polls conducted in this country, such a cliché may seem undeserved: more than 70% of residents of the Czech Republic believe that joining the European Union has benefited their country and that the Czech Republic should stick with Europe.
In fact, essentially only one Czech can be called a true, consistent Euroskeptic, but he is the most important one - the country's president, Vaclav Klaus. He never concealed his contempt for the "Brussels bureaucratic monster" and was the last in all of Europe to agree to sign the so-called Lisbon Treaty - the new basic treaty of the EU, which was adopted in December 2009.
Nevertheless, the Czechs have always viewed at least one European "innovation" with great suspicion - namely, the common European currency.
The eurozone member countries would be happy to accept the Czech Republic into their club: the economy of this state, at least before the crisis, was quite stable and developed well, so if the Czech Republic adopted the euro, it would benefit the common currency. But the Czechs lacked what is usually called "political will" for such a step. And now, it seems, they also lack economic strength.
The current, interim Czech government of Jan Fischer would still like to introduce the euro in the country as quickly as possible, but experts believe that this will not happen before 2015. The economic crisis has given the Czechs, spoiled by the successes of past years, a record state budget deficit. Despite the fact that the Czech Republic feels economically much better than many EU countries, the living example of Greece adds fuel to the fire of those who would like to keep the crown.
The main supporters of introducing the common European currency in the Czech Republic are, of course, big businessmen. "We currently have no opportunity for safe business planning," emphasizes, for example, Holger Kintscher, a member of the board of the famous Czech automobile concern Skoda, commenting on his company's final balance for 2009. "The Czech crown is a kind of ball in the game of international financial investors, but by no means a stable currency that can be relied upon. This situation is simply unbearable for us."
Skoda, which is a subsidiary of the German concern Volkswagen, is the country's largest employer. So such complaints do not go unheeded. In addition, Czech exporters are pushing the idea of introducing the euro with all their might. According to Oldřich Dědek, spokesman for the Czech Ministry of Finance, "enterprises in the Czech Republic and, above all, Czech exporters have a vital interest in the speedy introduction of the euro. Foreign investors show the same interest. For me, as a financier, this is a decisive argument in favor of the euro: the Czech economy derives the lion's share of its profits from exports to eurozone countries. Thus, by joining them, we could not only save huge amounts of money lost in currency transfer, but also create prerequisites for further economic development of the country."
However, a different point of view is held by the Czechs themselves - not financiers, not big businessmen and investors, but those who are commonly called "average citizens." The Czechs are attached to their crown perhaps no less than the British are to the pound sterling. Moreover, as Oldřich Dědek, who coordinates the process of joining the eurozone in the Czech government, notes, "the problem is that there is a feeling in the country that in times of crisis, the crown protects us."
But Dědek emphasizes: "if you look at the country's economic indicators, you can confidently say: unfortunately, the crown does not save us from the crisis. The Czech Republic's gross national product shrank by 4% in 2009. And yet two years ago we had growth of 6%. Such changes can only be described as dramatic."
Nevertheless, you cannot argue with mass psychology: the Czechs seriously fear two things firmly associated in their minds with the concept of "euro": a sharp rise in prices, and the loss of the opportunity, even if theoretical, to turn to the European Union for financial assistance from a special EU stabilization fund. As is known, 50 billion euros from this fund are intended to keep afloat member states that are in a difficult economic situation and do not belong to the eurozone. So far, Hungary and Latvia have been able to use such assistance, while Greece and Ireland, where the euro is in circulation, have to balance on the brink of bankruptcy, unable to access the financial resources from this fund.
The possibility that the Czechs will indeed face hard times is becoming increasingly serious. The former "economic miracle" country, the Czech Republic is experiencing a severe recession. Analysts have warned the Czech leadership for many years that financial and economic reforms in the country are lagging behind, so now this factor has been added to the general crisis situation. The current Czech Republic is not yet a failed state, but economists are increasingly predicting a bleak future for the country.
Against this background, as Aldrich Dedek notes, the mood of the Czechs has changed somewhat: "At the moment, everyone has agreed that we need reforms that should help us comply with the Maastricht criteria (the conditions for a country to join the eurozone). Not in order to join the eurozone, but to overcome our own crisis and prevent the continuation of the irresponsible financial policy of past years. Otherwise, the 'Greek syndrome' will eventually manifest itself in us as well - the Czech Republic will go bankrupt." According to Dedek, in this sense, Greece has become a kind of "vaccine against inaction" for the Czech Republic.
Thus, the Czechs are mainly interested not in when the euro will come to the country, but when a government will finally come that dares to carry out economic reform. This is the opinion, in particular, of the Vice-President of the Czech National Bank, Miroslav Singer. "If we want to extract anything useful from the sad experience of Greece, it is the following: if a country joins the eurozone through tricks and window dressing, without properly preparing its economy, it will pay dearly for its arrogance. Therefore, we must first try to stabilize our own economy. Otherwise, it will cost us dearly, with or without the euro," he stated.
Thus, notes IA Rosbalt, both the camp of Czech supporters of the euro and the camp of opponents of joining the eurozone feel victorious: the example of Greece, interpreted differently by everyone, ultimately leads to one conclusion — the Czech Republic needs reforms. And only after economic transformations will it be possible to decide whether to introduce the euro in the country or do without it. In this respect, the prudent Czechs are to be envied: they have the opportunity to learn from others' mistakes. In this case, from the Greek ones.