Is it time to enter eurozone for Czech Republic? Arguments for and against in the context of deepening political and debt crisis of eurozone after the year 2009

Thesis focuses on the history of existence of the European monetary union. It evaluates the costs and benefits of entering the eurozone from the Czech Republic’s point of view. Also, it examines current political and economical events that are taking place in the troubled states of the eurozone (PIIGS) in the time of deep debt crisis which is afflicting those southern states for almost a decade. It concludes that the costs of entering the eurozone in the context of current events are way too high. For Czech Republic it is not just unnecessary but also risky because those Southern states have enormous debt to GDP ratio, in some the unemployment rates are greater than 15 % also in some of these states there are unpredictable radical right or left-wing political parties running the countries and the pressure that is being put on them by Troika keeps them from performing expansive fiscal policies. The eurozone is destabilized, the Spanish want to separate Catalonia, there are real concerns that the next crisis will begin in Italy and the Greek debt is unsustainable in the long run. Not only that Czech Republic shouldn’t enter any time soon but if there will not be any reforms of the monetary union or if stabilization of PIIGS will not happen, Czech Republic should not enter even in the long-term horizon despite it promised to enter by entering European Union.