Final Word from Wednesday, May 22, 2024

When Pres. Miloš Zeman made a big deal in May 2015 of supporting quick adoption of the euro, it had very little to do with adopting the euro. As we explained in the Friday Edition, it was instead part of an elaborate plan to bring allies of future Gov. Jiří Rusnok onto the CNB board. The objective of current Pres. Petr Pavel in supporting quick adoption of the euro isn't yet clear. Pavel said at the reVize Česka conference on Mon. that the important thing is "to be at the table where future eurozone measures are to be debated," because "remaining behind closed doors truly doesn't make sense to me." Yet leading critics of quick entry into the European Banking Union - Jan Frait, Tomáš Holub, Marek Mora, Miroslav Singer - warn that Czechs could be left outside the room even after entering ERM II. Perhaps Pres. Pavel has no clue about what this could mean in a future eurozone crisis. Or perhaps he does, and, like Miloš Zeman before him, has ulterior motives for supporting quick euro adoption. [ Czech Republic governor Czech National Bank inflation reVision of the CR ]