Czech government backs proposal to embed koruna in constitution

The Czech cabinet gave its consent to a constitutional amendment drafted by members of SPD and the Motoristé movement, seeking to enshrine the Czech koruna at the constitutional level. The proposal sets a three-fifths threshold of all deputies and three-fifths of senators present for any future alteration of the currency, effectively raising the bar for euro adoption. It also guarantees the continued right to hold and use cash.

While the amendment does not ban entry into the eurozone, it makes such a step contingent on a super-majority, reflecting a key element of the government’s program. Approval still requires a qualified majority in both parliamentary chambers, a challenge given the modest representation of SPD, the Motoristé and even ANO. The European Commission recently reported that the Czech Republic satisfies three of the four convergence criteria for joining the euro area, lacking only exchange-rate stability, and the government has said it will no longer produce readiness reports for the euro.