New RPP members will be under greater pressure from day one

In the beginning of 2004 the Sejm, Senate and the President are to decide the new composition of the Monetary Policy Council (RPP). The current RPP has not lowered interest rates since June, and according to market observers, the level of 5.25% will remain in force until the end of this year. "In order to show its credibility the new Council will have to make some brave decisions, or not take any cowardly ones. We might be slightly surprised by its first decisions," said Jan Czekaj, who replaced Janusz Krzyżewski in the Council a few months ago, and who will most probably have a seat in the new RPP. According to Czekaj, Poland's entry to the Euro zone might take place by the end of the decade. "The earliest possible dates are 2009-2010. Fulfilling the Maastricht criteria will be difficult, particularly when bearing in the budget deficit," he said. Starting next year the deficit, according to EU standards, cannot be above 6% of GDP, while in order to qualify for Euro zone entry, candidate countries have to go below 3%. (Parkiet, p. 7) A.K.