Czechs not to seek EMR-2 membership in 2007-source

PRAGUE, Oct 25 (Reuters) - The Czech Republic does not plan to seek to peg its crown currency to the euro within the EU's ERM-2 exchange rate mechanism in 2007, a finance ministry source told Reuters on Wednesday, quoting a euro convergence analysis.

The official said the finance ministry and the central bank concluded in the analysis that euro adoption in 2010 was no longer realistic but set no new target date for joining Europe's single currency zone.

"There is not even an indication of a new target date," said the official familiar with the analysis which was submitted for Wednesday's cabinet meeting.

A delay in planned euro adoption would be in line with growing market expectations that a burgeoning budget deficit will likely prevent the central European from meeting the criteria for adopting the single currency until 2012-2013. ((Reporting by Marek Petrus; Editing by Alan Crosby; Reuters Messaging: rm://marek.petrus.reuters.com@reuters.net; e-mail: prague.newsroom@reuters.com or marek.petrus@reuters.com; Tel: +420 224 190 477))

Keywords: ECONOMY CZECH EURO ERM