Euro Adoption Unlikely In Czechia As Elections Favorites & Public Opinion Align Against Common Currency

Authored by Thomas Brooke via Remix News,

Andrej Babiš’s ANO, SPD, STAČILO! and others vow to protect the Czech crown, while business leaders and government coalition partners push for the adoption of the euro…

Czechia’s possible adoption of the euro in the future may emerge as an issue in the upcoming parliamentary elections this October.

While most parties in the current governing coalition have expressed support for adopting the common European currency, the opposition ANO movement — widely expected to win the largest share of the vote — remains firmly opposed.

ANO leader Andrej Babiš has repeatedly dismissed the euro as economically dangerous and politically unwise. “I do not support it,” he said bluntly, warning that if the current coalition retained power, “they will introduce the euro.”

He argued that adopting the euro would lead to higher prices and force Czechia to take on the financial liabilities of heavily indebted eurozone members. Instead, he advocates keeping the Czech crown, following the example of wealthy non-euro EU states such as Denmark and Sweden.

Czechia committed to adopting the euro when it joined the European Union in 2004, but remains one of only three countries from that enlargement round — alongside Poland and Hungary — that have yet to join.

Other opposition parties are similarly critical. Kateřina Konečná of the far-left STAČILO! movement said, “The euro means higher prices,” citing Croatia’s experience. “I am against giving up the Czech crown, which would, among other things, give up another part of our sovereignty.” Her party has called for any future decision to be made by referendum.

The populist Motorists, led by Petr Macinka, and the right-wing SPD under Tomio Okamura also reject euro adoption.

“We would be giving up another part of our sovereignty and submitting even more to Brussels,” said Macinka. Okamura’s SPD warned of a forced sharing of debt burdens with large Western states and added, “The Czech crown is also a national symbol.”

The fledgling Motorists are seen as a possible coalition partner for Babiš’s ANO should the parliamentary arithmetic not allow it to govern on its own; however, such an alliance would be subject to the party reaching the threshold to enter parliament. Okamura’s SPD is less likely to be seen as a viable partner, given its more hardline approach, but it is not impossible.

While political resistance remains strong among right-leaning and nationalist parties, much of the current government coalition takes the opposite view.

STAN leader and Deputy Prime Minister Vít Rakušan has declared, “The Czech Republic should adopt the euro as soon as possible,” calling for a parallel public education campaign to dispel what he termed myths about the currency.

Pirates vice-chairman Zdeněk Hřib also supports swift adoption, claiming it would boost economic stability, strengthen Europe, and save the state up to 30 billion crowns annually in debt servicing costs.

Prime Minister Petr Fiala has struck a more cautious tone, acknowledging that the Czech Republic now meets key Maastricht criteria but warning that public opposition remains too high.

“Majority public support is key to the decision to launch the process of adopting the euro,” he said.

“This condition has not yet been met.”

A Median poll from early 2024 found that more than two-thirds of Czechs believed adopting the euro would not be beneficial, with three in five wanting a referendum on the issue. Students and entrepreneurs were somewhat more supportive, with 45 percent and 40 percent backing the euro, respectively.

This heavily contrasts with support among businesses, with a PwC survey showing nearly 70 percent of CEOs see euro adoption as beneficial to their companies, citing savings on transaction costs, elimination of exchange rate risks, and greater investor confidence. “Seven out of ten bosses convinced of the positive impact of the euro on their company is already a very strong signal sent to the new government,” said PwC partner Jan Brázda.

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