News & Analysis

Poland’s PM Cool on Euro Membership

Poland’s Prime Minister Mateusz Morawiecki has spoken to the conservative weekly wSieci about Poland’s entry to the euro zone.

According to Mr Morawiecki, countries can join the single currency eurozone provided that they are “at a similar economic level in a broad sense.” However, he explains that his reservations/objections to Poland joining the euro zone is a “pragmatic” one.

“I have dealt with this subject scientifically and I know that countries can create a single currency area if – generally speaking – they are at a similar economic level in a broad sense,” Mr Morawiecki told wSieci. He adds that “we and the Germans, we and the Netherlands are not such an area…In the event of a crisis, the lack of a floating exchange rate would bring us problems.”

“In 2009, before the deep recession, Poland saved the zloty. Your own currency is a very important element of economic security. To enter the euro zone, you have to be really ready for it,” he added.

The buying power of the euro in Poland is strong. Countries on Poland’s borders that joined the eurozone have increased spending in Poland.

“Slovaks and Lithuanians who joined the eurozone were storming Polish border stores,” says Mr Morawiecki.

According to the prime minister, although Poland is not ready to join the eurozone, he noted that “everything depends on the pace of convergence, or catching up, and in some areas – we overtake the countries of the so-called old Union.”

“Entering the Eurozone would eliminate the exchange rate risk and reduce transaction costs. However, these are not benefits that would prevail over their own flexible monetary policy and over the ability to issue bonds in their own currency,” concludes Mr Morawiecki.