Euro in Poland? MF: could be a source of disruptions in the economy

Poland's membership in the euro zone could be a source of disruptions in the economy – wrote the Ministry of Finance in the latest edition of the EMU Convergence Monitor.

“Taking into account the current degree of similarity of the Polish economy and the euro zone – in particular in terms of the level of development (measured e.g. by GDP per capita) – Poland's membership in the euro zone could be a source of disturbances in the economy,” it was written.

“The differences observed so far in the structure of economies and (to a lesser extent) in the course of business cycles between developed countries and Poland are significant, which is, however, characteristic of the catching-up process. In the longer term, thanks to the implementation of structural reforms that strengthen the potential and efficiency of the Polish economy, the degree of similarity with the euro area member states should increase,” it added.

Monitor shows that Poland maintained a similar level of real convergence measured in GDP per capita as a year earlier.

According to the European Commission's forecasts, economic growth in Poland will be the highest in the entire EU, which proves that the driving forces of the Polish economy continue to function well.

“However, if Poland is to continue the convergence process at the current or faster pace in the longer term and reach the level of development of the largest EU countries, it should, among other things, increase investments and make their structure more similar to large euro area countries, primarily in investments in intellectual property and human capital, in order to better cope in the future with the effects of an aging society in the context of a decreasing labor force,” they wrote. (PAP Business)

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