As złoty reaches another high, analysts warn it is a bubble that may soon burst

Some economists warn that the reaction of the market is strange as only a few days ago the European Commission spoke unfavorably about Poland's perspective to join the European Monetary Union, as well as the government's sluggish steps to bring public finances firmly under control. "The market clearly underestimates the dangers which appeared on the horizon," stated bank PKO BP's chief economist Łukasz Tarnawa. On Monday, government representatives will meet with representatives of the National Bank of Poland. One of the discussed points will be the strength of the złoty. The Economy Minister Jerzy Hausner believes that the continually strengthening złoty pose a real threat to economic growth, "The strong złoty negatively affects the situation of exporters, and it is exports that is driving economic growth," stated Hausner. He added that to prevent the further strengthening of the Polish currency, the Monetary Policy Council needs to "notice what is happening." (Puls Biznesu, pp. 1, 4-5) E.B.