Government approves euro timetable
The government approved an ambitious timetable for adopting the euro by January 2012 last week, despite resistance from opposition party Law and Justice (PiS) and constitutional hurdles. At the same time, President Lech Kaczyński seemed to soften his opposition to the plan, and the country's largest newspaper voiced support for quick euro adoption.
According to the plan, the government would start work this month on amending the Constitution to allow the European Central Bank to set a monetary policy, looking to have the changes approved in the first months of 2009. The plan also foresees Poland negotiating its entry into the ERM-2 exchange rate mechanism in H1 next year.
Prime Minister Donald Tusk said that the current crisis on financial markets around the world was a strong argument in favor of swift euro adoption, believing that it will increase economic stability. He added that it might be possible to convince the president, who has previously come out against the government's plans, to support the initiative.
"For the first time I heard words from President Kaczyński that allow me to believe this project will get acceptance, or at least that he will treat it seriously," Tusk said after a cabinet meeting chaired by the president.
Later, the president said he still had doubts as to whether the plan was realistic, but added that it could prove positive for Poland by offering greater stability for the economy and financial markets.
The PM's plan got a further boost last week as tabloid Fakt, the country's largest daily newspaper, endorsed quick euro adoption.
"Dear readers, don't be afraid of the euro ... [I]t is best for you," the paper said, adding that the euro would mean more jobs, higher pensions and more investment in the Polish economy.
"The best thing our country can do to defend itself in this crisis is to introduce the euro as soon as possible," the tabloid wrote.
| The path to the euro | |
| The following is an abridged version of the Polish government's timetable for adopting the euro | |
| STAGE 1 | |
Oct-Dec 2008 |
Finance Ministry and central bank make preliminary preparations for negotiating Poland's entry into the European exchange rate mechanism (ERM-2) |
| Nov 2008 | Appointment of government official to coordinate euro adoption process and inter-institutional working groups |
| Dec 2008 | Publication of central bank's report on Poland's euro zone membership |
| Q1 2009 | Starting procedures to change the Constitution |
| H1 2009 | Finance Ministry and central bank hold negotiations with EU institutions on Poland's ERM-2 entry |
| STAGE 2 | |
| H1 2009 | Poland to join ERM-2 |
| H1 2009 | Start of an information campaign on the euro |
| H2 2009 | Decision on symbols for Polish euro coins |
| H2 2010 | Preparing legal acts for euro-adoption, including the so-called umbrella law |
| May-June 2011 | Poland's procedure evaluated by various EU institutions |
| Mid-2011 | Ecofin decision to lift Poland's derogation clause |
| Mid-2011 | Ecofin decision setting the irrevocable conversion rate |
| STAGE 3 | |
| By end-2011 | Production of euro coins |
| After conversion rate set | Start of dual display of prices and monitoring of price practices in the retail and banking sectors |
| Dec 2011 | Sales of "starter kits" to small companies and "mini kits" to citizens |
| Dec 2011 | Preparation of cash machines and payment terminals to switch to the euro |
| Q4 2011 | Final stage of IT and accounting systems convergence to the euro |
| Q4 2011 | Information and media campaign about practical aspects of euro adoption |
| STAGE 4 | |
| Jan 1, 2012 | Poland joins euro zone. Euro notes and coins enter into public circulation |
| To be decided | Dual circulation period |
| After dual circulation period | Złoty stripped of official currency status - euro becomes the only currency in Poland |
| To be decided | Free złoty-to-euro exchange at banks |
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Source: Reuters
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