Balcerowicz calls for quick transition to the euro to avoid "turbulence"

The early adoption of the euro by new European Union (EU) members will reduce economic turbulence in the countries themselves, while not damaging confidence in the single currency, central bank governor Leszek Balcerowicz said yesterday. Poland, along with several other countries, is hoping to join the alliance in 2004. Under current EU rules new members must spend at least two years in a second version of the European Exchange Rate Mechanism (ERM2) while assessments are made as to whether they can meet inflation and budget targets and demonstrate exchange rate stability. "This transition period for small open economies can be pretty turbulent," Balcerowicz told a conference in London on the single currency. He went on, "The shorter this period, the shorter the period of turbulence." Some EU officials have called for a transition period longer than two years, saying that entry too early could jeopardize the economic stability of the euro zone. (Reuters)