Rokita rushes to embrace euro
Jan Rokita, widely held to be the next Prime Minister, has drawn fierce criticism for suggesting that Poland may unilaterally adopt the euro as a last-ditch solution to its economic problems
The leader of Civic Platform said that he expects the currency to further strengthen, given the party's planned fiscal and tax reforms, should it take power after the next general election.
Speaking at a meeting with the American Chamber of Commerce, he said: "Our [planned] public finance reforms, state spending cuts, as well as lower tax barriers, will probably contribute to further złoty appreciation ... This trend is slowly starting to become excessive, it is not yet there but is becoming so.
"This plan envisages trying to stabilize the exchange rate through some sort of fixed złoty rate-here everyone suggests unilateral euroization. This [would be] done after initial fiscal reforms are carried out and public finances strengthened.
However, many economists have rejected the idea. Central bank governor, Leszek Balcerowicz, has repeatedly warned that the euro is not a cure for all Poland's ills.
"Is it feasible? No," Lars Christensen, emerging markets economist with Danske Bank in Copenhagen, told Reuters.
"The central bank and the government can always choose to fix the exchange rate, but to introduce the euro in this way would in no way be welcomed by either the ECB or the European Commission," he added.
The leader of Civic Platform said that he expects the currency to further strengthen, given the party's planned fiscal and tax reforms, should it take power after the next general election.
Speaking at a meeting with the American Chamber of Commerce, he said: "Our [planned] public finance reforms, state spending cuts, as well as lower tax barriers, will probably contribute to further złoty appreciation ... This trend is slowly starting to become excessive, it is not yet there but is becoming so.
"This plan envisages trying to stabilize the exchange rate through some sort of fixed złoty rate-here everyone suggests unilateral euroization. This [would be] done after initial fiscal reforms are carried out and public finances strengthened.
However, many economists have rejected the idea. Central bank governor, Leszek Balcerowicz, has repeatedly warned that the euro is not a cure for all Poland's ills.
"Is it feasible? No," Lars Christensen, emerging markets economist with Danske Bank in Copenhagen, told Reuters.
"The central bank and the government can always choose to fix the exchange rate, but to introduce the euro in this way would in no way be welcomed by either the ECB or the European Commission," he added.
