The rest of the article below the video:
The conversation with Domański, published by the British “Financial Times”, shows the change in the approach of Prime Minister Donald Tusk's government to the euro issue over the years. In 2008, during his first term, head of the Polish government was a supporter of Poland's accession to the euro zone. However, the debt crisis in Europe and strong public opposition pushed this plan into the background.
PLN as the foundation of the economy
In an interview with “FT”, Domański argued that the Polish economy, based on the zloty, is currently ahead of many euro zone countries. — Our economy is now doing significantly better than most countries that have the euro – said the minister, adding that data and research increasingly support maintaining the current currency.
According to the minister, the main reasons why Poland is not currently moving towards adopting the euro are economic, not political. — Two years ago, I was a little afraid that Poland might fall behind in the two-tier European Union and outside the euro zone, but today Poland is clearly at the economic forefront, he noted.
Public opinion favors the zloty
Since Donald Tusk returned to power in October 2023, the zloty has strengthened against the euro, and polls show that the majority of Poles support maintaining the national currency. Domański noted that although public support for the zloty is important, the government's decisions in this matter are based primarily on economic analyses.
— I like the Polish zloty and Poles like the Polish zloty – Minister Domański also said during a conversation at the World Economic Forum in Davos. The head of the Ministry of Finance argued in favor of remaining in the local currency. “There are some macroeconomic arguments for and against adopting the euro,” he said, but added that “During market turmoil, the zloty acts as a stabilizer, cushioning external shocks. This is what we saw in 2007-2008.” The minister also recalled that although adopting the euro is associated with certain benefits, “in the current digital era, they are less important.”
Data from the Organization for Economic Co-operation and Development (OECD) show that the Polish economy is expected to grow by 3.4% in 2024. This would be the fastest growth rate among European Union countries. This result, according to many experts, is another argument for staying with the zloty.
According to EU regulations, all member states outside the euro zone (the only exception is Denmark) are obliged to adopt the common currency after meeting certain fiscal and monetary criteria. However, as the example of Poland shows, the pace of implementation of this commitment remains an open question. For now, Warsaw does not see any urgent need to change its currency policy.
