By Gemma Lougheed - 30th August 2005
The Czech Republic is to delay euro zone entry by a year moving back the rendez-vous from 2009 to 2010.
A spokesman for the Czech Republic government said that the amended timetable is inline with an updated plan for the preparation of the country's accession to the eurozone.
The Czech Republic aims to allocate more time to tightening its fiscal policy and expects to meet the adoption conditions of having a public finance deficit below 3% of GDP in 2008.
Prague's reassessment of its entry to the eurozone may affect other accession member states who know their economies are currently in a worse state than the Czech Republic and which are not as attractive for foreign investors.
All four central European countries have said they plan to join the euro by the year 2010, Slovakia in 2009, followed by Poland, Hungary and the Czech Republic, now in 2010.
The eurozone is a logical extension of the single market and is seen as a way to make the EU more competitive, securing prosperity and jobs.
Countries can generally operate in a more competitive environment once in the eurozone.
In addition to the macro-economic consequence of joining the euro include the 'one-size fits all' interest rate.
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