Will devaluation proceed eventual Euro zone entry in 2006 or 2008?

The Central Bank and Finance Ministry agreed on Tuesday on a broad policy towards Euro-zone accession, setting their sights on adopting the single currency as early as possible after joining the EU. Despite the apparent consensus over timing, the sides were hazy on details over the zloty's preferred Euro entry level, a major issue for long-term economic compe titiveness. Policy makers agreed to try to meet the tough entry standards, the so-called Maastricht criteria, by 2006, or 2007. This is far earlier than expected by financial markets. The question is can the government bring the bulging budget deficit under control in time? "If there are no major economic upheavals, we want Euro membership two years after ERM-2 entry," said Central Bank deputy chief Andrzej Bratkowski. Analysts still believe 2008 is a more realistic date for Euro zone entry. (Reuters)