According to Regional Development Minister of Poland Elzbieta Bienkowska, euro should be adopted as soon as possible because zlotys appreciation partially eliminates the value of the financial aid made by European Union and which is denominated in euro.
There is also a concern about the damage to the economic growth that may be caused by the rapidly strengthening national currency. Bienkowska urged countrys financial authorities to accelerate the euro adoption process:
Looking at the zloty exchange rate since Poland joined the EU, it seems obvious that euro adoption would be the most rational solution. It would enable us to avoid the risk created by the zlotys strength, which may continue in the next EU budgetary period.
The Polish zloty rose 17 percent against the European currency since the countrys entry into European Union in 2004, affecting the real value of 12.8 billion euro of the financial aid received during the first two years.
Current government prefers to link zlotys exchange rate to euro for the year or two prior to the actual adoption. Adopting euro requires also low inflation, budget deficit and public dept.
EUR/PLN declined from 3.2701 to 3.2635 in the early trading today as the zloty remained quite stable against the U.S. dollar, which is currently rising against the euro.
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