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26 January, 12:53
Business and Economy

Poland freezes plans to adopt the euro as a strong economy reinforces support for zloty

Poland is not rushing to adopt the euro, Finance Minister Andrzej Domanski said in an interview with the Financial published on Sunday.

“Our economy is now doing ⁠clearly ⁠better than most of those that have the euro. We ‍have more and more data, research and arguments to keep the Polish ‍zloty,” Domanski said.

He noted that the argument for joining the euro zone has become less compelling, as Poland’s economy has been growing faster than most others in the bloc. While EU member states are required to adopt the single currency once they meet specific conditions, Domanski suggested Poland does not see an urgent need to do so.

Domanski said that while public sentiment supports retaining the zloty, the decision to hold off on adopting the euro is driven mainly by economic considerations, not politics. He added that fears raised two years ago about Poland being sidelined in a two-speed EU outside the euro zone have largely disappeared, as the country is now firmly among Europe’s leading economies and sees little incentive to give up control over its monetary policy. IMF data show Poland’s GDP reached about $1 trillion last year, making it the world’s 20th-largest economy, while the OECD projects growth of 3.4% this year, the fastest in the EU as of December.

Former prime minister Donald Tusk pushed for adopting the euro by 2012 during his first term starting in 2008, but those plans unraveled amid the eurozone debt crisis and resistance from the right-wing Law and Justice party. Although Tusk returned to office in October 2023 leading a pro-European coalition, opinion polls still indicate that most voters are against joining the euro. During this time, the zloty has appreciated relative to the euro.