The Czech Republic's plans for adopting the European single currency have been approved by the country's government.

In a move which may affect British investors considering buying property in the country, prime minister Mirek Topolanek said that the republic would need to implement a number of tax reforms to prepare for joining the euro, EUbusiness reports.

While the national bank is expected to be drawing up detailed plans for the adoption process before the end of June, Mr Topolanek said that all discussions about when the country would introduce the currency would be "useless" if the reforms were not introduced.

"It is not until afterwards that we can take a perspective on euro adoption," he remarked.

In its World Economic Outlook, the International Monetary Fund (IMF) stated that "successful transitions" into the euro zone offer the best way of combating currency "mismatches" experienced by a number of countries relying on foreign currency lending, report Reuters.

"Considerable dangers would also arise from trying to make do with a slow track of sluggish reforms and hesitant steps towards currency union," the IMF said.

Commenting on the potential benefits provided by joining the single currency, Kate Hamilton, spokesperson for Homes Overseas, recently said that British buyers may be able to invest in more stable economies.

Adopting the euro is likely to make eastern European countries a much "safer bet" than in previous years, as their economies will have had to mature in order to meet the requirements for joining, she added.