Rushed adoption of the European single currency by the Czech Republic would be risky for the economy, which could suffer from higher inflation and higher unemployment as a result, a joint study by the Czech National Bank, Ministry of Finance and Ministry of Trade and Industry warned last week.
The study said the Czech Republic could adopt the single currency in 2009 or 2010 at the earliest, on condition that public finance reform and other reforms are carried out in advance. The Czech economy must first of all "tune up" with euro zone economies, for example, regarding the structure of its economy and economic cycles, it said.
