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Brussels/Frankfurt – The Czech Republic fulfills only one of the four criteria necessary for entry into the eurozone and adoption of the euro. In its Convergence Report for 2024, the European Commission (EC) stated today. The Czech Republic meets the criterion of long-term interest rate convergence, but does not meet the criteria of price stability, sound public finances, and exchange rate stability. The Commission expects the Czech Republic to start fulfilling the criterion of sound public finances.
The Commission assessed six European Union member states that have not yet adopted the euro but have committed to do so in the future. Alongside the Czech Republic, these are Bulgaria, Hungary, Poland, Romania, and Sweden. None of these countries meets all the criteria, with Poland and Hungary meeting none of them.
The Commission’s assessment is complemented by the European Central Bank’s (ECB) own Convergence Report, which was also published today and assessed the same member states. According to the ECB, these countries have made only some progress, mainly due to challenging economic conditions. “In the last two years, the countries monitored have been affected by the Russian invasion of Ukraine, which has led to a significant weakening of economic activity and a sharp rise in inflation. The most affected were countries with historically higher dependence on energy from Russia and stronger trade ties to Russia. In the future, economic activity is expected to improve in all the monitored countries, but geopolitical tensions and risks still cloud the economic outlook,” the ECB report stated.