Rising value of the euro could hurt economy and importers

The major reason behind this is the growing risk of rejecting the Hausner program of budget cuts and a stronger euro on international forex markets. "This could only be stopped by cutting interests rates by the ECB, which is unlikely," said Marek Nienałtowski from WGI. The main threat to the economy which stems from the weakening value of the złoty, is the growing public debt, which according to the 2004 budget should amount to 54.8%. A weaker złoty also means higher costs for households that took out loans denominated in euros. This situation also hurts importers. (Parkiet, pp. 1, 9) M.M.