Czech coalition party wants to adopt euro ‘as soon as possible’

The junior government Mayors and Independents (STAN) party, part of the current government coalition, has this week called for Czechia to adopt the euro as early as 2029 or 2030. Ahead of the general election just one month away, party leaders are urging the next government to set a firm timetable.

STAN chairman Vít Rakušan said he “could not imagine” signing any coalition agreement without creating a commissioner responsible for preparing the country to enter the European Exchange Rate Mechanism, known as ERM II.

Deputy chairman and Industry and Trade Minister Lukáš Vlček added that “a clear date for adopting the euro will be an important point in the future government’s policy statement.” The push comes as the Pirate Party, which was once in the coalition but has since left, has also shifted to favor introducing the common currency as soon as possible.

The ruling Spolu (Together) coalition, made up of the Civic Democrats, Christian Democrats, and TOP 09, maintains that adoption should only happen once it is economically and politically advantageous. 

Rakušan conceded that adoption is unlikely during the next parliamentary term. Still, he insisted the government must prepare all necessary conditions so the following administration can move forward.

The question of euro adoption has long remained a dividing line. Last year, the cabinet considered setting a deadline for entering the euro area or ERM II, but ultimately declined. STAN’s separate proposal to appoint a national euro coordinator also collapsed.

A private government report in November 2024 weighed euro adoption for Czechia. It warned of losing control over interest rates and monetary policy, plus taxpayer risks from bailouts. Benefits include lower inflation, cheaper long-term prices, easier price comparisons, and pressure to cut high domestic prices through stronger competition.

To qualify, states must spend two years in ERM II and meet key economic criteria: low inflation, low interest rates on government bonds, a public deficit below 3 percent of GDP, and debt under 60 percent of GDP. An assessment last year found that the Czech Republic met three of five conditions—deficit, debt, and interest rates—but failed on inflation and ERM II participation.