Czech government to set euro adoption date on November 1

Prague - Czech Prime Minister Mirek Topolanek said Thursday his government will meet on November 1 to set a date for adopting the euro, a change from his government's go-slow approach to Europe's common currency.

"November 1 is the date when the government will determine a date for adopting the euro," he said on Czech Television.

While the Czechs have been reluctant, other central European leaders have voiced their support for speedy euro adoption in the aftermath of the global financial crisis, seeing it as a shield during the ensuing slowdown of their economies.

The premier made the announcement on the day when neighbouring Slovakia became the 16th member of the eurozone. The Czech Republic and Slovakia formed a common state for 75 years until 1993, when they peacefully split.

Topolanek's three-party centre-right cabinet abandoned an earlier 2010 target for the currency changeover soon after the 2006 general election. However, they continued to strive to meet the EU's public finance rules for the switch, the so called Maastricht Criteria.

"It is evident that we will meet the convergent criteria," Topolanek said.

Czech officials have repeated that the country should fix its public finances before setting on the road to the euro.

Topolanek's weak cabinet, however, is likely to set the euro date without first introducing its planned reforms, including overhauling the pension system.

Indeed, the government recently lost its narrow majority in parliament. The leftist opposition is hollowing out measures already adopted, forcing the cabinet to soften direct fees for medical care.

Exporters have been putting pressure on Topolanek's government to set the euro target soon, as they were hurt in 2008 as the Czech koruna gained strength in relation to other currencies.

The public joined the exporters' call during an economic slowdown prompted by the global financial crisis.

A survey for Czech Television by the Stem polling agency found that 64 per cent of Czechs want the government to make a decision this year about the eventual date for taking on the euro. (dpa)

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