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The Czech Republic On The Road To The Euro-zone - Nominal Covergence Criteria

  • Tuleja, Pavel

Prior to its EU entry, the Czech Republic accepted the obligation to exert maximum efforts in order to fulfill conditions in the possible shortest time, on whose basis it will be able to accept the common European currency � the Euro. During the proper examination of the readiness of the Czech Republic for fulfilling this criterion one has to take into account both prerequisites, which are necessary for the integration of the Czech Republic into the Eurozone, and the dispositions of the Czech economy to maintain positive effects arising from this membership. Since such a complex analysis concerning the preparedness of the Czech Republic for accepting the Euro would be rather extensive, we paid our attention merely to the examination of the extent, to which the Czech economy meets Maastricht nominal convergence criteria. Based on the analysis, we come to a conclusion that the Czech economy will not be able to meet this obligation in the following three years, mainly due to high deficits of public finances. In the last part, based on our estimates we claim that the Czech Republic could become a member state of the Euro-zone as early as in 2010.

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File URL: http://mpra.ub.uni-muenchen.de/11678/1/MPRA_paper_11678.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 11678.

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Date of creation: 20 Oct 2005
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Handle: RePEc:pra:mprapa:11678
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