The new right-wing populist government of Andrej Babis has made a firm commitment to ensuring that the Czech Republic will never adopt the euro. Instead, it wants to establish the Czech koruna as legal tender and guarantee citizens' right to pay in cash.
"We commit that our government will neither adopt the euro nor take steps to introduce it," says the political program approved by the new coalition government at its first meeting on Monday. It includes Babis's "Action of Dissatisfied Citizens" (ANO) party, the Eurosceptic "Motorists for Themselves" (Motoristé sobě) and the far-right "Freedom and Direct Democracy" party. (SPD).
"We will propose to parliament that the Czech crown be enshrined in the Constitution of the Czech Republic - together with the right to own and use cash as legal tender," the cabinet's governing program states.
Can the government keep its promise?
At this stage, this promise seems rather hollow. Babis' government has 108 seats in the lower house of parliament. A three-fifths majority is needed to change the constitution, which means the votes of at least 120 people in the 200-member Chamber of Deputies.
Even if this obstacle is overcome, the upper house - the Senate - remains, where it will be even more difficult to pass such a law, because there the government can count on only 15 out of a total of 81 senators. A three-fifths majority is also required in the Senate.
Czech President Petr Pavel does not have the right to veto constitutional acts, he only promulgates them. But parliamentary arithmetic seems to make this political promise meaningless. So why is it being made?
A gesture to far-right voters
"This is a political gesture", believes Robert Brestan, editor-in-chief of the independent news portal Hlidaci Pes.
"This is a tacit expression of resistance to the euro, or more broadly - to the European Union, on the part of part of the ruling coalition and especially the far-right SPD, whose voters like this", he commented to DW. Brestan believes that the chance of the Czech crown being enshrined in the constitution is almost zero. "The coalition does not have the necessary votes in either the Chamber of Deputies or the Senate", he argued.
The symbolism of cash
The right to use cash is often instrumentalized by populist and far-right parties across Europe. This has little to do with convenience, but rather the symbolism is sought - when we pay with cash, we do not allow the state and its institutions to monitor and control us.
In far-right circles there is a fear of "digitalization imposed from above" and there is talk of "digital totalitarianism". This is in full sync with anti-European sentiment, resistance to Brussels and the pursuit of sovereignty and personal freedom.
No one has canceled the right of Czechs to pay with cash. However, Robert Brestan points out that there are people in government circles who prefer to keep their money under the mattress. He also recalls that the right to use cash is enshrined in Czech law - it is written in the Currency Act. Any merchant who refuses to accept cash is breaking the law, unless there are good reasons for doing so.
The opposite problem is usually observed - shops do not accept card payments, which causes discontent. Czechs are a digital nation, they do not part with their smartphones and often pay with applications such as Apple Pay or Google Pay.
The Czech Republic has postponed entering the eurozone for over 20 years
The Czech Republic officially committed to adopting the euro when it joined the European Union in 2004. Since then, however, all governments in Prague have postponed the date for entering the eurozone. With the Babis government, it is moving even further away. The vast majority of Czechs are against adopting the single European currency, which makes the topic politically very sensitive, says Martin El, a leading analyst at the economic daily Hospodarske noviny.
"People's fears are fueled by their skepticism due to past crises in the eurozone, concerns about loss of sovereignty and possible price increases", El told DW. "And taking into account traditional Czech euroscepticism, as well as the rise of populism and nationalism, it would be political suicide for any politician or party to insist on the introduction of the euro," he added.
What do Czech businesses and citizens think?
Many Czech businesses support the adoption of the euro and are already using it in their transactions. But their influence on politics is limited, says Martin El. "This is a political issue that can be abused. That is why businesses are just as afraid of the public reaction as politicians are", he adds.
However, a minority of observers believe that Czech businesses and people will slowly switch to the euro no matter what, and that the government and the central bank will have to follow suit.
Martin El is not convinced: "I don't see any significant change. There are almost no mortgages denominated in euros, which is a signal that Czechs trust the euro more than the koruna."
The final unknown factor is President Petr Pavel, who enjoys broad support. He has called on the nation to at least begin to discuss its commitment to adopting the euro under the terms of the country's EU accession two decades ago. For now, however, his call remains a voice in the wilderness.
Author: Rob Cameron