Since Poland's entry into the European Union in 2004, the country has formally committed itself to adopting the euro as its currency. However, this process requires a number of conditions, both economical and legal, which makes the possible of changing gold to euro seem distant. In this article we will look at the latest forecasts, challenges and opinions of experts regarding Poland's entry into the euro area.
Why does Poland gotta accept the euro?
Poland, as a associate of the European Union, has undertaken to adopt the single currency under the Maastricht Treaty. Adoption of the euro is not optional – it is 1 of the foundations of European integration. Despite this, the Polish economy inactive does not meet all the required criteria, specified as:
- Stability of inflation,
- Maintaining the budget deficit below 3% of GDP,
- Exchange rate stability,
- Long-term interest rates comparable to another euro area countries.
Currently Poland does not meet any of these conditions. Moreover, according to experts, economic crisis and advanced inflation they are moving us distant from the anticipation of joining the Eurozone.
Small support for the euro in Poland
According to the latest survey by the Foundation for economical Freedom, the support for the introduction of the euro in Poland is only 30.7%Whereas the opponents of currency change are 56.5% of respondents. The year before was 34.9%. This decline is due to increasing concerns of Poles about the stableness of the economy and the impact of the single currency on everyday life.
Adam Glapiński, president of the National Bank of Poland (NBP), explicitly announced that Poland would not enter the euro area during its word of office. "We gotta conduct monetary policy on our own, taking care of growth and employment," he said. In his opinion, joining the euro area could have a negative impact on the modernisation of the army and economical sovereignty of the country.
Legal obstacles: change of constitution
One of the biggest challenges in the process of adopting the euro is the request to change the Polish Constitution, which states that “the currency of the Republic of Poland is gold”. Without the right majority in parliament, it is impossible to amend this provision. There is presently no political consensus on this issue, which further prolongs the euro introduction process.
Experts on the prospects of adopting the euro
Dr Bartłomiej Gabryś from the University of Economics in Katowice believes that Poland will not adopt the euro in the next 5 years. It points out that a change in currency requires economical stability, which is presently lacking. Jakub Borowski, the chief economist of Credit Agricole Polska, has a akin position, stressing that a return to macroeconomic balance is simply a key condition for joining the Eurozone.
Jarosław Janecki of the Society of Polish Economists suggests that Poland should appoint the adoption of the euro as long-term objective. "The discussion on conditions, including the entry course, is highly important," says Janecki.
Is Poland ready for the euro?
The introduction of the euro has both supporters and opponents. possible benefits include:
- Lower transaction costs in global trade,
- Increasing abroad investment,
- Deeper integration into the European market.
However, opponents point to the hazard of price increases, failure of control over monetary policy and possible difficulties for the export sector.
When can we anticipate the euro in Poland?
Poland's adoption of the euro is simply a process that can take many years. According to experts' forecasts, The earliest possible date is the second half of the 1930s., provided that all economical and political requirements are met.
Today both the authorities and the public stay divided on this issue. Until Poland reaches economical stableness and the constitution is changed, the subject of adopting the euro will stay only a theoretical discussion.
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Euro in Poland: erstwhile will the change of currency take place? Experts have given a deadline
