The Czech Republic this year failed to meet two out of four criteria set by the EU for the adoption of the single European currency, the euro, according to a report by the Czech National Bank and the Finance Ministry. Due to a hike in the VAT rates, the Czech Republic did not meet the criterion of price stability. It also exceeded the three-percent limit on government budget deficit which is expected to reach percent of the GDP this year. The Czech Republic meets the remaining two conditions – government debt below 60 percent of the GDP and long-term interest rates. Although bound by its EU accession treaty to adopt the euro, the Czech Republic has set no date for doing so.