In a controversial New Year’s address, Czech President Petr Pavel suggested that paying wages in euros could boost the country’s future prosperity. However, leading economists are pushing back against this notion, pointing to evidence that suggests otherwise.
While the current government has shelved any plans for euro adoption, President Pavel continues to advocate for the common currency. “Even if we don’t match German salaries in the next few years, our future prosperity would benefit from wages being paid in the same European currency as in Germany,” the President declared in his New Year’s speech.
However, economists paint a different picture. Petr Dufek from Creditas Bank argues that Slovakia’s experience proves the euro isn’t a guarantee of prosperity. Since adopting the euro, Slovakia has actually fallen from the ninth-lowest GDP per capita in the EU to the fourth-lowest, trailing behind Poland and Romania.
The debate extends beyond wages to broader economic implications. Poland, maintaining its own currency, has emerged as Central and Eastern Europe’s fastest-growing economy since joining the EU. Meanwhile, euro-using Estonia has experienced higher inflation (42%) compared to the Czech Republic’s 38% between January 2020 and November 2024.
Industry perspectives add another layer to the discussion, with the Czech Confederation of Industry and Transport supporting euro adoption, citing benefits such as reduced transaction costs for exporters and increased foreign investment potential.