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Report: Poland still preparing to join euro

Report: Poland still preparing to join euro

Poland still aims to enter the euro zone's pre-membership currency regime this year, but first markets must stabilize and the country must address the constitutional changes needed to join the common currency, the finance minister said Wednesday.
Prospective euro members are required to spend at least two years in an exchange rate mechanism, also called ERM-II. The mechanism demands low and controlled inflation, healthy public finances and a budget deficit below 3 percent of GDP.
Finance Minister Jacek Rostowski reiterated that Poland wants to join ERM-II in the first half of this year, despite deepening economic troubles, but added that two conditions should be met first.
"We must either change the constitution so that we can join the euro zone after being in the ERM-II, or we should have a clear perspective or belief that we are going to be able to change the constitution," Rostowski was quoted as saying by the PAP news agency.
Prime Minister Donald Tusk's pro-business government, which has set a target of joining the common currency in 2012, needs the support of the largest opposition group in parliament _ the euro-skeptic Law and Justice party _ to make the constitutional amendments needed to adopt the euro. The Law and Justice party has so far opposed a quick euro adoption.
Rostowski was quoted by PAP as saying the second condition is "sufficient stability of financial and currency markets" because then joining ERM-II will be "safe and sensible."
Poland's zloty has fallen sharply against the euro and dollar, dropping as much as 15 percent so far this year as the global financial turmoil has hit emerging economies in eastern Europe particularly hard.


Updated : 2021-06-23 05:18 GMT+08:00