Brussels, 27/11/2007 (Agence Europe) - It will be hard for the Polish government to communicate the exact date of Poland's accession to the eurozone before the 2008 budget has been adopted, on 25 January next year. Finance Minister Jacek Rostowski on Saturday 24 November presented the new draft 2008 budget (updating the version prepared by the previous government, which then came in for criticism from the European Commission) and the economic priorities of the new government. These include budgetary balance, the reduction of public debt and the introduction of the euro. On this last point, the minister, who is seen as a great defender of swift transition to the single currency, believes that accession to the eurozone will contribute towards sustainable economic growth, but cannot be achieved before the end of the current mandate, which ends in 2011. According to the Finance Minister, Poland will, on the other hand, be able to fulfil all necessary criteria and join the new exchange rate mechanism (MTC 2) during this term of office.
“To replace the zloty with the euro exceeds the mandate of a single term in office”, said Mr Rostowski, adding that “this objective must be realised as soon as possible, but in such a way as to guarantee the maximum advantage”. He said that up to the date of 2011, the government would work to reduce the public debt/GNI ratio by 4-7 percentage points, with a view to preparation for adopting the euro. According to the members of the Civic Platform currently in power (and in coalition with the PSL party), the new Polish government may consider the adoption of the euro in 2012 (a date which will coincide with Poland's hosting of the European football championships), but only as long as this decision is justified economically, as it will require enormous efforts, and all will depend on the estimated costs related to the introduction of the euro. According to Prime Minister Donald Tusk, the adoption of the euro must be “safe for the economy” and good for the “cost of living of the ordinary people”. During his speech presenting the programme of the new government (see EUROPE 9550), he took pains to reaffirm that it is “in the interests of all of us (…) to be prepared, as soon as possible, for the transition to the euro”. On Saturday, after the vote of confidence granted to the government, Mr Tusk also took position in favour of a decision to accede to the euro being made by parliamentary means rather than by referendum. “I would not advise reasoning from the referendum point of view”, he said, going on to propose “to prepare and decide in this Chamber (…), or (…) in the next Chamber”. According to sources close to the finance minister, it is believed that by 2011, Poland will be capable of fulfilling all the necessary criteria for the adoption of the single currency and that accession to the MTC2 will also take place under this term in office.
The draft budget was prepared by the Conservative government of Jaroslaw Kaczynski and included forecasts of a budgetary deficit of 29 billion zlotys (approximately €7.8 billion) for 2008. Mr Tusk's government, which has voiced a great deal of criticism for the previous draft budget, hopes to reduce the deficit by 1 to 1.5 billion zlotys (€0.2-0.4 billion), bringing it down to around 27 billion zlotys (€7.3 billion). By the end of January, the Parliament is to review and adopt the amendments proposed by the new government, after which the budget will be submitted (on 25 January) for the approval of Polish President Lech Kaczynski. (A.By.)