Czechs could adopt euro in 2012

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The Czech Republic could adopt the euro in 2012 if the government makes it its priority, Czech central bank (CNB) Vice-Governor Ludek Niedermayer told Reuters.

Niedermayer told the Reuters Central European Investment Summit it was necessary to set a euro entry date at least three years before the intended target date. The government abandoned an earlier target of 2010 entry, mainly due to high budget deficits and a lack of reforms that would secure the long-term sustainability of public finances.

It has refused to set a new target, although Finance Minister Miroslav Kalousek had pushed for 2012. Niedermayer said 2012 could still be possible if politicians wanted it. „Economically it should be feasible,” he told the Reuters summit, taking place in Vienna. The government has pledged to cut the budget deficit to 2.95% of gross domestic product next year from 3.6% expected in 2007, below the 3% threshold for euro entry. (The full text of the story)

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