25th October 2004
Thursday, September 2nd, 2010
Poland not ready for euro
The European Commission has ruled that there should be no change in Poland's status as a "Member State with a derogation," when it comes to adopting the euro.
The commission found that Poland is lagging behind its fulfillment of criteria required to join the euro area. Analysts say that the government budgetary position is unsatisfactory because the deficit for last year reached 3.9% of GDP, exceeding the 3% of GDP required by euro area members.
Poland has also failed to fulfill the criterion on inflation rate, which for 12 months until August 2004 stood at 2.5%. Average long-term interest for the same period was 6.9%, meaning the country fell at the convergence fence for long-term interest too.
Moreover, EU chiefs found that the Act on the National Bank of Poland and the Constitution of Poland is not fully compatible with Article 109 of the Maastricht Treaty and the Statute of the European System of Central Banks and the European Central Bank. Therefore the country is not yet prepared for the integration of its central bank with the ESCB. Marta Madej, Brussels
From Warsaw Business Journal
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