Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Czechs may seek observer seat at beefed-up euro group to keep information flow

Published 08/21/2017, 09:48 AM
Updated 08/21/2017, 09:50 AM
© Reuters. Detail of a European map, including Great Britain, is seen on the face of a Euro coin in London, Britain

PRAGUE (Reuters) - The Czech Republic may try to get an observer seat at the euro group of euro zone finance ministers if its decision-making powers are boosted under plans to reshape the European Union, the foreign minister said on Monday.

European leaders are pondering reforms in response to Brexit, a process that could pick up speed after the election of Emmanuel Macron as French president, and after German election in September.

Fostering more integration between euro zone countries could mean those outside of the single currency zone would have no seat at the decision-making table, while still having to live with consequences affecting the whole union.

For the Czechs, who do not use the euro and have no intention of adopting it soon, this would risk them being left in the dark on some key decisions. Being at the table while not joining the euro fully at least for the time being could limit that downside.

"I support having an observer status in the euro zone," Foreign Minister Lubomir Zaoralek said in emailed comment to Reuters after the plan was reported by Czech weekly Respekt on Monday.

"It is undoubtedly beneficial for us to have the possibility to take part in their meetings and thus have a direct insight into the governance of the euro zone."

A Czech government source said the idea was part of a Czech position paper on EU reform. It said Czech diplomats would be asked to sound out EU partners, including non-euro members such as Sweden, about the idea.

The Czech Republic has an obligation to eventually adopt the euro, but it does not have a concrete plan on when it will do so and opinion polls show a solid majority of the public is against joining.

© Reuters. Detail of a European map, including Great Britain, is seen on the face of a Euro coin in London, Britain

Prime Minister Bohuslav Sobotka has spoken in favor of preparing an adoption plan after an election due in October but the favorite to win, the ANO movement, has in the past months spoken against euro adoption.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.