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Eurosceptic Bloggers

Wednesday, April 13, 2005

Poland’s Early Euro Entry

If Citizens' Platform, the largest opposition party is a General Election winner, then Poland could make an early entry into the Euro.
If we can find a realistic scenario, with which the European Commission agrees to adopt the euro earlier than 2009, I would support it,'' said Rokita (Citizens Platform Leader).
So Poland could be the first New Member to join the single currency. Their reasons for wanting this?
Switching to the euro will help companies like KGHM Polska Miecz SA, Europe's largest copper mining company, avoid exchange- rate risk, and will keep the economy growing after it expanded 5.3 percent last year.
With the Eurozone currently in the doldrums, the first reason seems reasonable, but the second? Doesn’t pegging the currency to the Euro remove most of the Exchange rate risk whilst offering a disaster scenario get out clause. Joining is just so …..permanent. Still I like the party’s other plans:
Citizens' Platform supports spending cuts equal to about 3 percent of Poland's $300 billion economy, an increase in state asset sales and less state intervention in the economy.
That’s a choice we could do with in the UK.

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