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Adopting euro currency currently 'unthinkable'

PR dla Zagranicy
Peter Gentle 24.11.2011 08:52
Poland's finance minister Jacek Rostowski has said that Poland joining the eurozone under present conditions is “unthinkable”.

Minister Rostowski on TVP last night

Rostowski told the TVP public broadcaster on Wednesday evening, however, that “one the hand, when the zloty weakens it has unfortunate consequences for families who have taken out loans in [Swiss] francs. But on the other hand [having an independent currency] increases our competitiveness”.

Rostowski reminded that four years ago the Civic Platform-led coalition announced its desire to adopt the European single currency as quickly as possible, but the finance crisis scuppered those plans.

But the finance minister said that it is still a goal to join the eurozone “at the appropriate time”

“We can only do this when it is safe for the Polish economy. At the present time the eurozone is being subjected to gigantic shocks and is not operating in a way that is safe for its members.”

Rostowski's remarks come after data showed eurozone manufacturers recorded their worst monthly drop in orders in almost three years in September. Analysts say that this could signal a recession in Europe as the debt-crisis spreads from the finance sector to the real economy.

New orders fell by 6.4 percent compared with August, according to the European Union’s statistical office.

This was the biggest month-on-month fall since December 2008, when the global economy rocked from the collapse of Lehman Brothers investment bank.

Germany, a crucial trading partner for Poland, failed to sell a full tranche of new debt to the capital markets, yesterday, forcing the central bank in Berlin to intervene.

Germany has been seen up until now as a safe haven in the eurozone. But following the news yesterday the euro fell in value against major currencies. (pg)

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