Czech government adopts programme paving way for euro adoption

The Czech government adopted a programme paving the way for adoption of the single currency euro on Monday. The so-called convergence programme calls for the Czech budget deficit to be reduced to 3.0 percent of Gross Domestic Product by 2013 or 2014, Prime Minister Jan Fischer said. The deficit was 6.6 percent in 2009. Such a move would, according to Minister of Finance Eduard Janota, allow the euro to be adopted in 2016 or 2017. The two main political parties have come out for a faster deficit reduction in recent days. The Civic Democrats say the 3.0 percent limit should be reached in 2012, allowing theoretical euro adoption in 2015. The Social Democrats say euro adoption could take place by 2016.