Adhesion of Poland into EURO ZONE

Jaroslaw Kundera
European Research Studies Journal, Volume XIII, Issue 1, 49-72, 2010
EOI: 10.11214/thalassinos.13.01.004

Abstract:

Poland has been a member of the European Union since 1 May 2004 and adoption of the euro by Poland is integral part of our Treaty of Accession. From the legal point of view Poland is already the member of the Economic and Monetary Union (EMU) but because has not completed the third stage of the EMU, we still can use our own currency – polish zloty.On January 17, 2006 Polish Finance Minister Zyta Gilowska said in an interview that Poland will not adopt the euro before 2010, adding that 2011 was an achievable deadline. In October 2006, the Polish President Lech Kaczynski said in an interview with Spain,s El Mundo that euro entry” should be a subject submitted to a referendum, which would take place at the end of his legislature, which ends in 2010 (1). Polish Prime Minister Donald Tusk said during the Economic forum in Krynica that Poland would adopt euro in 2011 a year before the European football championship organized together by Poland and Ukraine. In November 2008 Polish Government accepted so called road map to introduce euro by 2012. Firstly, Polish zloty should join the ERM 2 system which was planned in the middle of 2009. Secondly, after accomplishment convergence criteria in 2011, Poland is going to fix the permanent exchange rate between polish zloty and euro. Thirdly, introduction of Euro and withdrawal of polish zloty is previewed on 1 January 2012. The prices on polish market are going to be presented in two currencies (polish zloty and Euro) during six month. However, before Poland will join the euro zone , the Polish Constitution has to be amended to give the European Central Bank the right to print and distribute euro as a national currency. In connection with the world financial crises and suddenly devaluation of polish zloty most economist agree that government plan of euro introduction in Poland is too rushed and not realistic and adhesion of zloty into ERM 2 system should be delaying.


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