The Czech Republic and Euro Adoption: Obstructing Factors and Future Prospect

Abstract

The world’s greatest financial and economic integration under the framework of the European Union is currently being questioned in the way that stagnates the process of Eurozone enlargement. With the focus on the Czech Republic, this paper seeks to explore the reasons why this country chooses not to adopt the euro even if it is relatively ready and has legal obligation to do so. The answer lies within the interplay between domestic and international factors—both economic and political ones—as they reinforce anti-euro sentiments among the politicians and the public. There is, however, the light at the end of the tunnel as data has shown that future prospect of euro adoption in the Czech Republic is rather more positive despite certain obstacles.