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William Malcolm

Majority Of Czech Exporters Support Euro Adoption: Survey

According to a survey by Raiffeisenbank and the Association of Exporters, 57 percent of Czech exporters currently support the adoption of the euro, and 29 percent of them would welcome this step as soon as possible. By contrast, a quarter of exporters completely reject the single European currency, fearing, for example, the collapse of the eurozone or the euro crisis. The results of a survey conducted among forty exporters were presented today at an online press conference by Raiffeisenbank’s chief economist Helena Horská.

21 percent of exporters are in favor of adopting the euro sometime in the distant future, and seven percent of respondents would not do so before three to five years.

According to the survey, 18 percent of Czech exporters do not have a strong opinion on the adoption of the euro. “Many realize that the euro or any common currency is not self-saving. It will not win new orders and new markets on its own. Only a competitive product and service opens the door to exporters for existing and new customers,” said Horská.

In April, the government approved a convergence program, which is the basic document for the adoption of the euro. The Ministry of Finance expects debt to grow to 54.6 percent of gross domestic product (GDP) in 2024 from this year’s expected 44.8 percent of GDP. In the event of savings on the revenue and expenditure side planned by the Office, the debt should rise to 52.8 percent of GDP. Last year, public debt was 38.1 percent of GDP.

Under standard circumstances, without the effects of the coronavirus pandemic, the European Union requires a public finance deficit below three percent of GDP and a debt below 60 percent of GDP for the adoption of the euro.

Last December, in a joint regular paper, the Czech National Bank and the Ministry of Finance again recommended to the government not to set a target date for joining the euro area. The current government of Andrej Babiš stated in its program statement that it would not seek to join the eurozone.