When is the Czech Republic changing to the Euro?
 

Hello
Debating on a trip to Scotland this year or a trip to Prague and Budapest. I want to get to Prague before they change to the Euro. I have found conflicting info regarding this topic ranging from 2007 to 2010. Anyone know for certain?

It is unlikely that any of the new EU countries will adopt the euro before 2008 (and adopting the euro was one of the obligations for their membership). From what I have read, the first countries to qualify will probably be Slovenia, Malta, Cyprus and Estonia. However, momentum will probably build as the date nears and most of the countries will do anything possible to be in the first bunch -- including lying and issuing fake statistics, just like the countries of the original euro zone did.

"I want to get to Prague before they change to the Euro"

Why ?

"Why?"
I suppose that because all the prices will be higher.

I go to Italy fairly frequently and France at least once every couple of years, & I didn't think the euro made prices higher.

Hi CE,

>I go to Italy fairly frequently and France at least once every couple of years, & I didn't think the euro made prices higher.<

Italians did see significant inflation when the Euro was adopted.

However, this was likely the result of greed rather than monetary policy.

Although, some economists have written that Italy was keeping the Lira cheap by printing too much money.

((I))

i suspect that the european countries with the less mature economies (czech, poland, etc) will see a much greater increase in prices when switching to the euro than was experienced with countries like france, germany, etc.

I was referring to how weak the $ is to the Euro.

But isn't that a function of the dollar being weak generally, rather than the euro being strong ? E.g. the dollar is also weak against the pound currently. So might it not quite likely also be be weak against the Czech crown ?

who knows -- I've heard these theories, also (about switching to the euro causing higher prices), but I didn't notice it myself in the countries where I've traveled, mainly France. I also read some anecdotal reports about it causing increased prices in Italy and Germany, but I don't know.

As for CR, the dollar has been weaker against the Czech koruna than the euro in the last few years, if I remember correctly. It certainly isn't stronger, but I think it lost more value against the koruna than the euro in 2003-2005.

I don't think the US dollar is particularly weak in trading with the Euro right now. It was absurdly strong a few years ago--but right now it's about where it was predicted to be when the Euro was getting ready to be launched.

Historically, the dollar has been both a lot lower and lot higher than it is now. We're about in the middle of the range based on what I've read recently.

For other currencies, it all depends on individual factors for those countries--where they are in their economic cycle, trade surpluses/deficits, economic growth, unemployement, etc. Against some the US dollar is strong right now; against others it is weak; against others its somewhere in between.

Although I don't have any economic proof of countries that switched to the euro and subsequently everything became more expensive. After living in switzerland for years and travelled to Italy and France extensively it did seem that the minute they did change to the visiting there just semed more expensive. Even after talking to quite a few of the locals they even stated that it did. maybe not much but everything went up. Who know's, but I would hit Prague definatley before they switch to the euro. Althoug it's popularity has risen lately and so have prices, but relative to other places it's still a bargain. Especially the beer and food.