Czech president slams eurozone rescue fund

(PRAGUE) - Eurosceptic Czech President Vaclav Klaus Friday said he would not sign up to the new eurozone debt rescue fund, the European Stability Mechanism, though his resistance cannot sink it.

"This is something monstrous, senseless and absurd, and I will certainly not be signing it," Klaus, known for his fierce opposition to a string of European Union policies, was quoted as saying by the Czech news agency CTK.

The Czech parliament approved the country's participation in the European Stability Mechanism (ESM) in June and the fund is already up and running, meaning Klaus's opposition is essentially symbolic.

Czech foreign ministry spokesman Vit Kolar said that Klaus's stance would have "no impact" on the ESM, in which the Czech Republic will only be involved if it joins the eurozone.

The former communist country entered the EU in 2004 and is committed to switch eventually from its national currency, the koruna, to the euro.

But the eurozone's economic woes, coupled with underlying Czech scepticism, have led to a wait and see approach.

The current centre-right government of Prime Minister Petr Necas has said the Czech Republic will not adopt the euro while it is office -- and its mandate runs until 2014.

Meanwhile, Klaus's second and final term as president of the nation of 10.5 million runs out next March.