{"id":5248,"date":"2024-02-17T19:05:16","date_gmt":"2024-02-17T19:05:16","guid":{"rendered":"https:\/\/www.gnews.cz\/?p=5248"},"modified":"2024-02-18T12:45:36","modified_gmt":"2024-02-18T12:45:36","slug":"the-crown-is-not-against-us","status":"publish","type":"post","link":"https:\/\/gnews.cz\/en\/politika\/koruna-nam-neprekazi\/","title":{"rendered":"The crown is not in our way"},"content":{"rendered":"

Photo: website of ODS<\/strong><\/p>\n\n\n\n

(Euro) There is no reason to get rid of the koruna and adopt the euro. The costs and risks of joining the euro outweigh the potential benefits. Unfortunately, the euro debate today is dominated by the emotional rantings of euro supporters, not by cold economic analysis. Not surprisingly, economic theory is clear about the (dis)benefits of membership of the currency union - in the absence of facts, emotions are all that is left.<\/p>\n\n\n\n

The eurozone was supposed to bring faster economic growth to its members, the euro was supposed to boost trade, investment, and deepen the internal market. This has not happened.<\/p>\n\n\n\n

The average growth rates of the euro area countries, or the hard core of the EU, have been steadily declining as the European integration process deepens, and even the emergence of the euro area has not reversed this trend. The euro area was supposed to accelerate the convergence process.<\/p>\n\n\n\n

That didn't work either. It has not brought poorer countries closer together with richer ones; on the contrary, the gap between the rich north and the poorer south of the EU has widened.<\/p>\n\n\n\n

By adopting the euro, we would lose a flexible exchange rate and an autonomous monetary policy. A free exchange rate is an essential means of achieving external balance. For the Czech Republic, it is something of a buffer.<\/p>\n\n\n\n

It proved its worth in all crises from 2008 to Covid-19. The exchange rate of the crown depreciated in these difficult times, making Czech goods cheaper abroad. The fall in exports and GDP were shallower than if Czech exporters had not been able to take advantage of this short-term way of increasing competitiveness with the euro (and a fixed exchange rate).<\/p>\n\n\n\n

Euro supporters stress that our own monetary policy has not protected us from high inflation. But even the euro was no guarantee of low inflation.<\/p>\n\n\n\n

Slovakia and other similar countries with the euro had inflation rates similar to the Czech Republic. If we had the euro, the CNB would not have been able to raise interest rates so quickly and significantly.
The European Central Bank started raising rates later and to lower levels. Lower rates would lead to even higher inflation in the Czech Republic.<\/p>\n\n\n\n

We committed to the euro when we joined the EU, but since then the eurozone has changed for the worse. It has become a fiscal transfer union, and the basic principles have been violated in that the taxpayer of one state is not liable for the debts of another state. With the completion of the banking union, the transfers will deepen further. We have committed ourselves to entering a very different project from the euro area today. Nobody and nothing is forcing us to join. There is therefore no reason to enter it. The koruna is not in the way.<\/p>\n\n\n\n

ods.cz\/gnews.cz-JaV_07<\/strong><\/p>\n\n\n\n

https:\/\/www.ods.cz\/clanek\/25293-koruna-nam-neprekazi<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Photo: website of ODS (Euro) There is no reason to get rid of the koruna and adopt the euro. The costs and risks of joining the euro outweigh the potential benefits. Discussion...<\/p>","protected":false},"author":2,"featured_media":5250,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[7],"tags":[45,46,78,10,17,41],"class_list":["post-5248","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politika","tag-cr","tag-eu","tag-evropa","tag-news","tag-top","tag-world"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/gnews.cz\/en\/wp-json\/wp\/v2\/posts\/5248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gnews.cz\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gnews.cz\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gnews.cz\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/gnews.cz\/en\/wp-json\/wp\/v2\/comments?post=5248"}],"version-history":[{"count":0,"href":"https:\/\/gnews.cz\/en\/wp-json\/wp\/v2\/posts\/5248\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gnews.cz\/en\/wp-json\/wp\/v2\/media\/5250"}],"wp:attachment":[{"href":"https:\/\/gnews.cz\/en\/wp-json\/wp\/v2\/media?parent=5248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gnews.cz\/en\/wp-json\/wp\/v2\/categories?post=5248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gnews.cz\/en\/wp-json\/wp\/v2\/tags?post=5248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}