Sunday

24th Oct 2021

Poland sets out plan to join euro by 2011

  • Poland is ready to apply for euro membership, Donald Tusk says (Photo: EUobserver)

Polish Prime Minister Donald Tusk has confirmed he is planning to lead his country into the eurozone by 2011, with a view to follow Slovakia as the second and largest central European country to join the single currency bloc. He admitted that meeting entry criteria will be "difficult," however.

Speaking at the launch of an economic forum in a Polish resort of Krynica on Wednesday (10 September), Mr Tusk said: "Today I can confirm that our goal [for switching to the euro] is 2011. It is a tough task, but we believe it is possible," the PAP agency reported.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

Up to now, Warsaw has avoided the question of a concrete timetable for entry into the monetary union, which Poland is obliged to do when ready under its EU accession treaty, just as with all the other new member countries.

Polish President Lech Kaczynski sparked concerns in Brussels quarters in 2006 when he openly expressed his distaste for the euro and hinted that Warsaw could hold a popular vote ahead of abandoning its national currency, the zloty, in 2010, close to the end of his presidency.

However, the country has been closely watching the path to the euro of its southern neighbour, Slovakia, set to join the eurozone in January and become its 16th member. Meanwhile reports about Poland losing out in EU aid due to the appreciation of the zloty also appeared to increase pressure on national leaders to move ahead with the decision.

In a bid to fulfill its pledge, Mr Tusk's government will have to follow strict budgetary discipline. Earlier this week, ministers approved a draft budget for next year, with a predicted public deficit of less than 2 percent of GDP, which is well below the EU's limit of 3 percent of GDP.

But the country's inflation of 4.8 percent appears to remain slightly above the currently accepted ceiling for price stability, also one of the key conditions for euro qualification.

Poland will have to join the European exchange mechanism (ERMII) at least two years ahead of switching to the euro and prove that the zloty is sufficiently stable.

Polish deputy finance minister Kataryzna Zajdel-Kurowska suggested Warsaw might request to join the system next year, according to PAP.

Luxembourg tax scandal may prompt EU action

An investigation into Luxembourg's tax regime has uncovered how the Italian mafia, the Russian underworld, and billionaires attempt to stash away their wealth. The European Commission has put itself on standby amid suggestions changes to EU law may be needed.

Investigation

Portugal vs Germany clash on EU corporate tax avoidance

Portugal's taking over the EU presidency puts the tax transparency law for corporations - which has been fought over for years - to a vote in the Council of Ministers. The resistance of the German government has failed.

News in Brief

  1. Russia's anti-vax campaign backfired, EU says
  2. China angered as MEPs call for Taiwan talks
  3. Emissions from La Palma volcano reach Brussels
  4. Body of eighth victim of Belarus border-crisis found in river
  5. Report: Syrian bank fiddling currency to evade EU sanctions
  6. Nato adopts plan to counter new Russian threats
  7. Alleged killer of British MP 'felt affiliated' to IS
  8. Coronavirus: Belgium returns to 'red' zone

Vietnam jails journalist critical of EU trade deal

A journalist who had demanded the EU postpone its trade deal with Vietnam until human rights improved has been sentenced to 15 years in jail. The EU Commission says it first needs to conduct a detailed analysis before responding.

Stakeholders' Highlights

  1. Nordic Council of MinistersNew report reveals bad environmental habits
  2. Nordic Council of MinistersImproving the integration of young refugees
  3. Nordic Council of MinistersNATO Secretary General guest at the Session of the Nordic Council
  4. Nordic Council of MinistersCan you love whoever you want in care homes?
  5. Nordic Council of MinistersNineteen demands by Nordic young people to save biodiversity
  6. Nordic Council of MinistersSustainable public procurement is an effective way to achieve global goals

Latest News

  1. EU states want more Belarus sanctions
  2. Gas price spike exposes rift at EU summit
  3. Poland vows not to give into EU 'blackmail' at summit
  4. EU vows to uphold Paris climate ambition amid scientists' fears
  5. Commissions's new migration pact still seeking 'landing zone'
  6. Europe can't ignore Chinese encroachment in Ukraine
  7. Lithuania - where 'biodiversity funding' is cutting down trees
  8. Dutch lawyers take Frontex to EU court over pushbacks

Join EUobserver

Support quality EU news

Join us