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Poland Wonâ€™t Adopt Euro by 2016

21 February 2012 14:26 (UTC +04:00)

Baku - APA-Economics. The euro has lost some of its shine for Poland, which is why the country wonâ€™t enter the European Unionâ€™s single-currency bloc by 2016, said Polandâ€™s central bank governor Marek Belka.

In excerpts from an interview posted by the central bank on its website Monday, Mr. Belka said â€œno one is eagerâ€ to replace the zloty with the euro, and that his country wonâ€™t adopt the euro during his term of office, which ends in 2016. Considering the euroâ€™s crisis, Poland â€œisnâ€™t irrationalâ€ in dragging its feet to join the euro area, he added.

â€œToday, the euroâ€™s attractiveness for Poland is somewhat smaller, although it should be kept in mind that economic and political costs of remaining outside the euro zone are considerable,â€ he was quoted as saying.

Poland is obliged by its EU accession treaty to eventually join the euro zone. It has no accession target, however, and doesnâ€™t currently meet most of the euro entry criteria, including limits on government deficit and currency volatility.

Polandâ€™s currency is an attractive target for speculation, while its volatility is bad for the economy, Mr. Belka also said. The currency is volatile mainly due to Polandâ€™s need for external financing, he said.