Czech Election Result Could Delay Euro Adoption Until 2025

.

The clear winner of the Czech Republic’s parliamentary elections is ANO 2011, an anti-establishment political party founded by Andrej Babiš, a Slovak-born billionaire.

However, although the victorious ANO received 29.6 per cent of all votes, amounting to 78 seats in the 200-seat Chamber of Deputies, the party might have difficulty forming a coalition. Of the eight other parties which also made it over the 5 per cent electoral threshold, only four (the Social Democrats, Christian Democrats, Communists, and the anti-immigration SPD) might be prepared to team up with ANO. The remaining parties do not want to form a coalition with Mr Babiš because of both ongoing criminal charges and populist rhetoric.

For Mr Babiš, an ex-minister of finance, the local economy is of great importance. He is the founder and vociferous advocate of the electronic record of sales (Elektronická evidence tržeb), a system to which he attributes the country’s economic prosperity. He wants to continue with the system (unlike some other parties) in order to raise revenue collection and prevent tax evasion.

Mr Babiš says that the Czech Republic’s economic activities should be run like a company, with balanced revenues and expenses. He wants to focus on investments and wants the tax environment to be predictable and stable. He aims to lower tax rates.

“We do not expect any material impact of the election on the Czech crown’s exchange rate, and we forecast it will continue to appreciate, closing the year at 25.50 crowns to the euro,” Lukáš Kovanda, chief economist of Cyrrus told Emerging Europe. “We do not expect any significant change in the current trajectory of Czech government bonds either. We see yields rising due to expected monetary tightening in both the Czech Republic and eurozone next year,” Mr Kovanda said.

The euro was one of the central topics of the election. Given that ANO, which does not favour the adoption of the single currency, came out victorious, the future of the euro in the Czech Republic is as uncertain as ever.

“The biggest loser of the Czech election is the euro,” added Mr Kovanda. “Parties calling unconditionally for its quick adoption, especially TOP 09 and, in a later phase of the campaign, the CSSD (Social Democrats) have seen their position in parliament considerably weakened. The TOP 09 party struggled to even enter parliament. On the other hand, Mr Babiš declared the euro a ‘bankrupt’ project during the election. Unless he radically changes his mind, it is not realistic to expect the adoption of the currency anytime before 2025.”

RELATED ARTICLES

Ukraine’s Economic Recovery: Good, But Slow

ukraine money

Chickens Blamed for Romanian Budget Deficit

Two white chickens or hens inside a chicken coop or hen house seen through chicken wire.

Poland Is Set To Become a Large Economic Zone

Aerial view over the building materials processing factory. View from above.

Slovenia Sets Green Vehicle Deadline of 2030

ljubljana

‘Traditional Values’: A Potent Weapon Against LGBT Rights

gay rights putin

Does the Sceptre of Separatism Haunt Emerging Europe?

Szekely Land Flag

Tech Giant Expands Romanian Operations

Why Was Zapad-2017 So Important?

russian tank belarus zapad

Poland’s Q2 2017 Growth Is Stronger Than Expected

WARSAW, POLAND - MAY 07, 2016: Building Palace of Culture and Science among the modern buildings of the city

Estonia — Easy Doing Business Destination seminar in the UK

More EU Help for Belarus SMEs

GRODNO BELARUS - DECEMBER 13 2013: Seamstress in textile factory sewing with a industrial sewing machine .

Budget Chaos Hits Romanian Leu

Different Romanian Lei Banknotes on the table

Škoda too Strong for VW Group

MLADA BOLESLAV CZECH REPUBLIC - MAY 30: Skoda Octavia on conveyor line during Doors Open Day at Skoda Auto a.s. factory. Skoda auto celebrated 120 years since its founding on May 30 2015 in Mlada Boleslav.

Plovdiv — an emerging outsourcing destination

Georgian PM Reshapes and Reshuffles Cabinet

Giorgi Kvirikashvili

CEE Emigrants Could Boost Their Countries’ Economies

Londoners walking through Millennium Bridge with St.Paul's Cathedral at the background after sunset - London, UK

Georgia Leads Emerging Europe in Ease of Doing Business Report

PE and VC Investment In CEE Is At an Eight-Year High

venture capital

GE Inaugurates Its New Bucharest Software Centre

Asian Outsource Developer Team Sitting At Desk Working Laptop Computer Mobile Application Software Real Office

World Bank’s Doing Business Report 2016 Resume For Emerging Europe

Belarus Introduces New Business-Friendly Auditing Procedures

MINSK, BELARUS - AUGUST 15, 2016: Aerial view of the southwestern part of the Minsk with Palace of Sport and old and new other buildings. Minsk is the capital and largest city of Belarus.

HSBC Reports CEE Growth Surge in Q3

romania national bank

Lithuania Set to Streamline Competition Legislation

Industrial dock with cranes on the quay

The Czech government attracts FDI and creates jobs

Valga and Valka – Where Estonia and Latvia Work Together

Valga valka emerging europe

High-Tech Park in Minsk is growing rapidly

Meghri Becomes Armenia’s Third FEZ

armenia emerging europe

Warsaw Rising: The Polish Capital’s Skyline Gets Even Taller

varso

Continental Launch Largest Ever Lithuanian Greenfield Investment

kaunas lithuania

Baltic States to Launch Combined Capital Market

capital markets

Effective Policies Have Strengthened the Georgian Economy

TBILISI GEORGIA Jul. 18 2017: Bridge of Peace is a bow-shaped pedestrian bridge a steel and glass construction over the Kura River in downtown Tbilisi capital of Georgia

The Slovak Matchmaking Fair open for registration

Bad Payers Still Causing Problems for Romanian Firms

Close up Romanian currency note, LEI or LEU, Romania

Chris Lowney — What Jesuit Spirituality Can Teach Us About Global Leadership

Derek Chollet: There Is a Resurgence of Supporters of the Transatlantic Relationship

white house

Despite Public Anxieties, Migration is Playing a Key Role in ECA Growth

Bratislava city aerial panoramic view. Bratislava is the capital of Slovakia.

Slovenia is CEE’s leader in innovation

Bloomberg Croatia Business Day 2015

UK Economic Growth Slows as Brexit Uncertainty Bites

flags of UK and EU combined over icons of London - Brexit concept

Non-Financial Reporting No Longer a Secondary Consideration in CEE

TV Still a Star for CME

Ukraine to Make New Privatisation Push

Georgia’s Growth Continues

Batumi, Adjara, Georgia - May 27, 2016: Batumi, Adjara, Georgia. Gogebashvili Street Road And Marine Station Or Maritime Station Building Batumi On Background

Montenegro Accelerates Legal Reform

montenegro law reform

IMF Believes State-Owned Enterprises Must Be Reformed

Image of the banknotes of new Belarusian banknotes five rubles put into circulation July 1 2016

21st century Manufacturing Arrives at Great Stone

Great stone

Nadiya Savchenko: I Dream of a Great Ukraine

Panorama of the top part of the Andrew's Descent from Castle Hill in springtime in Kiev Ukraine.

The Reality in Romania Exposes False Perceptions Of The Country

Towards a resilient Europe, strategies for the future

Kosovo: A Population of Talented Young Entrepreneurs Waits at Europe’s Door

Ametek opened a new factory in Subotica

All for One, and One for All

GE

Hungary Today: Potential and Challenge

Chain bridge on Danube river in Budapest city. Hungary. Urban landscape panorama with old buildings and domes of opera

Albania’s Economy Booms Despite Political Infighting

Panorama view to the city Tirana Albania

IMF Wants Banking Sector Reform in Western Balkans

croatia national bank

Putin Urges Belarus to End Oil Transit Through Lithuania

Athens Greece - May 27 2016: Russian President Vladimir Putin delivers

IMF Increases Growth Forecast With Emerging Europe Prominent

Dambovita river and center of Bucharest at sunset time Romania.

Romania’s Budget Deficit ‘Should Start Alarm Bells Ringing’

BUCHAREST ROMANIA - June 29 2017: Romanian Prime Minister Mihai Tudose during a swearing-in ceremony at Cotroceni palace in Bucharest capital of Romania June 29 2017.

World Bank: Brexit Hides Greater Challenges to the European Union and the CEE Region

Economy Minister: Internationalisation Is the Key To the Slovenian Economy

One in Five Poles Unaware of Source of Funds for 500 Plus Programme

German Multivac invests €15 million near Sofia

Growth Increase Offers Glimmer of Hope for Moldova

chisinau

Hungary Seen as Riskiest Country in CEE

risk

Digital Business Space Gives All Businesses an Office in Sarajevo

Sarajevo Bosnia and Herzegovina - August 24 2015. View from Vraca Memorial Park with building of Avaz Twist Tower

Kraków: Officially Emerging Europe’s Most Elegant City

Krakow. Image of Krakow Market square, Poland during sunrise.

CEE-Benefits and Disadvantages of Joining the Eurozone

forint zloty euro

Industrial Production Prices in New Increase

electricity

SEE Link — Sharing SEE Europe’s Hopes for a Brighter Investment Future

Ukraine’s Finance Ministry Wants Urgent Tax Reform

Still Potential for Growth in CEE as Economies Stabilise

Poland’s Business Constitution Must Be Finalised

Front of finance ministry in Warsaw Poland with a fountain framing the entrance. Could be used for images about Euro currency problems

Visegrad Group Looks East

Lviv Is the Pearl and the Soul of Ukraine

Changes Are Making Ukrainian Banking More Aligned with International Standards

Azerbaijan, Georgia, Turkey Launch New ‘Silk Rail’ Link

Slovenia is the CEE region’s leader in VAT collection

Do Your Homework First and Starting Business in Poland is Easier

The Azerbaijani Laundromat: Why It Matters

azerbaijani money laundering

Lithuania Wants to Bring Home its Skilled Workers

VILNIUS - FEBRUARY 25: Many people choose books at the indoor book

Ukraine to Restart Privatisation to Realise Profits

Pricatisation electricity ukraine

Western Ukraine Could Be an Entry Point into the Country

Fitch And the World Bank: Economic Growth To Remain Solid Within CEE In 2016

Poland to Switch from Emerging to Developed Market by September 2018

warsaw stock exchange

Belarus-Turkey Investment Forum to increase investment and trade between the two countries

Poland’s Flying Circus

airport poland

Growth Continues for State-Owned Azerbaijan Airlines

Azerbaijan Baku - September 16 2015: View of the Heydar Aliyev International Airport sign in Baku Azerbaijan. The airport is the home of Azerbaijan Airlines the national flag carrier.

Trans Adriatic Pipeline Will Fuel Albanian Growth

Xanthi. Greece - July 30 2017: aerial view of construction of gas pipeline Trans Adriatic Pipeline - TAP in north Greece. The pipeline starts from the Caspian sea and reaches the coast of southern Italy

EBRD Finances Small Business Support And Foreign Trade Promotion In Belarus

Macedonia — Stepping Out Of the Shadow Of the Balkans

Serbia, Belarus and Ukraine Ranked Lowly by Wharton Business School

Kyiv Ukraine - April 172017: The postal square in Kiev on Podol the Dnipro river. view of the square from the river panorama

Belarus is the most creative EEU country

Estonia Leads Baltics in Cutting Sugar in Food and Drink

Poles Still Keen on German Jobs

Brandenburg Gate in Berlin in Germany. The Brandenburg Gate is a triumphal arch a city gate in the center of Berlin. It is one of the most known sites in Berlin.

CEE Tech Growth Continues: Poland and the Czech Republic Lead the Way

technology

Air Passenger Volumes Reach Record High in the Baltics

airbaltic

Emerging Europe Makes Some Progress on Closing Gender Gap

world economic forum gender gap report

Slovakia: Growth Continues But Problems Remain

High Real Estate Prices at Home Force Czech Investors Abroad

Construction of the Petrin lookout tower in Prague Czech Republic

Budapest’s Property Boom Goes Nationwide

building

Lech Wałęsa: Hard Options Can Force Nations to Get Down to Work

Bulgaria and Romania Get EBRD SME Boost

Startup Diversity Teamwork Brainstorming Meeting Concept

Global Players Dash for Tempting CEE

dollar pound euro coin on euro background.

A Risky Evaluation of Croatia’s Economy?

ZAGREB, CROATIA - JULY 17, 2017: Square Ban Josip Jelacic with tourists and trams on a summer day in Zagreb. City of Zagreb is the capital of Croatia.

Doing Business Across Eurasia Could Be Easier

Eurasia emerging europe schneider group

IMF: Institutions Key to Sustainable Growth

IMF

Foreigners choose Minsk and Gomel as Belarus’ most attractive FDI destinations

Serbia Drafts New Competition Law

serbia belgrade flag

Mayor: Armenia And Its Capital Yerevan Offer Safe Investment And Tourism To a Growing World

Croatian Salaries Are Growing in Line With Other CEE Countries

Dubrovnik Croatia emerging europe

Regional News Outlets: The Real Target of Poland’s New Media Law?

poland media

ICT Growth Continues to Boost Bosnian Economy

ict, it

Poland Fails to Spend Billions of Euros in EU Funds

euro banknotes

Sarajevo Stock Exchange Connected to SEE Link

sarajevo stock exchange

Investing in Ukrainian Food and Agriculture

EU: Consumption Still Driving Growth

Economy builds bridges in Mostar

Bulgaria’s cooperation with Israel could boost the economy

Economic Confidence Rises Across Eurozone

Automotive and Transport Companies Dominate the CEE Region

Car bodies on the production line inside automobile factory

CEE Boosted by Positive Tourism Trends Across the Region

cruise ship in Kotor Bay Montenegro. Aerial view panorama. Kotor bay Montenegro.

Albania’s Construction Sector Supports the Country’s Growth

SARANDA, ALBANIA - MAY 18: View of the city Saranda, most important tourist attraction of the Albanian Riviera on May 18, 2017 in Saranda, Albania.

Jadranka Joksimović: Serbia Takes Its Candidacy of the EU Seriously

bigstock-Joint-Press-Conference-Of-Serb-155400338.jpg

e-Estonia: Believe the Hype

Euroscepticism in Serbia: An Image Problem?

Latvia Urged Not to Increase Expenditure As Economy Grows

Riga, Latvia - August, 2010: Panorama view from Riga cathedral on old town of Riga, Latvia

Latvian Deputy Prime Minister Highlights Riga’s Potential

riga

EU Commissioner Launches Veiled Attack on Poland and Hungary

eu commission

GSA Names Ukraine as UK’s Offshoring Destination of the Year

map of ukraine emerging europe

Albania is creating three free economic zones

Lithuania Handed Top Marks for Business Services

Beautiful panorama of Vilnius Old Town taken from Gediminas hill; Lithuania

Bosnia and Herzegovina: Focussing on Stability and Business Climate

Sarajevo Bosnia and Herzegovina - August 23 2015. View of Miljacka River in Sarajevo city

Young Georgians Make Their Mark at Emerging Europe-EBRD Event

maximilien lambertson at emergeing ebrd outlook on georgia

Czechs Hold Emerging Europe’s Most Powerful Passport

Polish Shoppers in Hunt for Eggs

eggs in rack

Estonia Leading CEE Country in WEF Competitiveness Index

pharmaceutical factory woman worker operating production line at pharmacy industry manufacture factory

Romanian Car Maker Dacia Sees Sales Boom

Sables d Olonne France - May 07 2017 : Dacia Tour 2017 is a commercial operation organized by the car builder in order to present its cars throughout France - Close-up on cars

Merkel: Albania is taking big steps forward

Polish Labour Market Deficits Are Impacting All

Construction site with crane and building. Construction site in western europe - in Poland.

Belarus Steps Up Liberalisation of Business

belarus

New investors interested in Belarus’ Great Stone Industrial Park

EY: Belarus’ IT Scene Is Thriving

High tech park minsk

Romanian Cabinet Reshuffled as New Splits Emerge in Ruling Party

BUCHAREST ROMANIA - MAY 25 2014: The Victoria Palace. Victoria Square.

Is Prague the New Face of Overtourism?

prague tourists

Estonia Proposes Bill of Rights and Responsibilities for Robots

Robotic hand accessing on laptop the virtual world of information. Concept of artificial intelligence and replacement of humans by machines.

Estcoin: Estonia’s Own Digital Currency?

1 euro coin money (EUR) currency of European Union Estonia over blue background

The Polish Government’s Mid-Term Report: Must Do Better

Front of finance ministry in Warsaw Poland with a fountain framing the entrance. Could be used for images about Euro currency problems

Emerging Europe Makes Great Strides in Improving Business Regulation for Entrepreneurs

Skopje Macedonia

Lviv Region in Double Logistics Boost

goods train logistics

Beyond Borders: Immigration Within the EU

refugees immigrants

Czech Republic Raises Interest Rates

czech koruna

Chinese Electric Car Maker Seeks Emerging Europe Base

zhi dou d2

Emerging Europe to Record Positive Growth Across the Board in 2018

coins growth

CEE Lags in Business Connectivity

ANIS romanian ICT

Baltics Seek Lockstep With High Tech States

Euro money: Macro view of euro coin and bill. Suitable for financial, monetary, euro or European Union concepts and ideas

Romanian Economy Grows Fast in 2017

Brasov cityscape panoramic and aerial view over medieval architecture of Brasov town, in Transylvania Romania

Kaczyński Defends PiS Record

IMF Urges Croatia to Speed Up Reform

croatia

Go East

Moldova Launches New e-Procurement System In Search For Positive Change

Photo team work process, holding contract hand, signs documents. Account managers young crew works with startup project.New idea presentation, analyze marketing reports.Blurred, film effect, horizontal.

Bulgaria: Real Estate’s New Frontier?

China Agrees to Build High-Tech Business Park in Serbia

BELGRADE SERBIA - SEPTEMBER 29 2016: View on the city center and the junction of Rivers Sava and Danube in Belgrade Serbia.

EU May Offer Georgia, Moldova and Ukraine Customs Union and Schengen Access

schengen

Ukraine Is Offering Europe Unique Combat and Technological Experience

EconMin: Bulgaria — Number One Outsourcing Destination And an Island of Stability in Europe

Poland Stays Cool on Euro Adoption

Euro cash and Zloty on one photo.

After Economic Shocks Armenia Plans for Macroeconomic Stability

yerevan armenia minister of finance

EU Membership and Transition into Market Economies Have Helped CEE Achieve Social Progress

Prospering Czechia Still Needs a Bigger Workforce

prague emerging europe

Romania Cuts Income Tax, Introduces Solidarity Tax

CLUJ NAPOKA ROMANIA - OCT 2 2016: People on the central street of Cluj Napoka - the unofficial capital of Transylvania.

CEE Is Key to China’s Belt and Road Initiative

Shanghai skyline Panoramic view of shanghai skyline and huangpu river Shanghai China

Lithuania Gives Innovation a StartUp

MILAN ITALY - MAY 2: People visit Lithuania pavilion at Expo universal exposition on the theme of food on MAY 2 2015 in Milan.

Sunday Trading in Poland Under Renewed Threat

Hungary’s Solar Dreamer

hand sun and blue sky with copyspace showing freedom or solar power concept

Globalisation Needs to Work, Not Only for the Few but for the Most and in Demonstrable Ways

Global Spread

More Brexit Fears As the UK Proves To Be A Needed Member

City of London view from Waterloo Bridge. This view includes: St. Paul`s Cathedral The Gherkin Tower 42 and Blackfriars Bridge.

Larisa Manastirli: Where is Bulgaria After Ten Years in the EU?

CEE Must Improve Infrastructure and Logistics

Aerial view of Gliwice Sosnica motorway junction. There are international traffic in four directions

Ukraine’s Q2 Growth Climbs

kyiv ukraine emerging europe

Investigations Into the Corrupt Ukrainian Fuel and Energy Sectors

Ukrainian money hryvnia. The national currency. Corruption in Ukraine

Belarus’ Economy Is Slowly Recovering From Past Declines

Emerging Europe Back on Track to Convergence

wiiw

Business Standards Are High in SEE But Vary Widely

Aerial view of The Cathedral of the Assumption in Varna

Revenues Of Bulgarian IT Companies Have Sextupled In the Last Decade

Retail Rents Rise Across Emerging Europe

Na Prikope Prague

Košice Business Matchmaking Event Brings in Hungarians

kosice, slovakia

CEE Nation Brands Still Behind Western Counterparts

TALLINN ESTONIA- JUNE 17: View of the modern high rise buildings on border with an old part of the city on June 17 2012 in Tallinn Estonia

Measure, Strengthen, and Grow

dacia brand

Baltic Bank Merger May Tempt Polish Heavyweight

DNB Bank Vilnius

Leave a Reply

Your email address will not be published. Required fields are marked *