April 16, 2019 / 8:11 AM / 10 days ago

C.banker Lon says Poland should keep zloty, never join euro

WARSAW, April 16 (Reuters) - Poland should keep its own currency forever and ask to be exempt from its obligation to join the euro, said Polish central banker Eryk Lon in an article published on Monday.

European Union members are obliged to work towards adopting the euro, but Lon’s sceptical outlook echoes that of the leader of Poland’s ruling PiS party Jaroslaw Kaczynski, who on Saturday said Warsaw should only adopt the common currency when its economy is as big as Germany’s.

“It is worth being aware that the liquidation of the Polish zloty is the next phase of a process that may eventually lead to the actual liquidation of the Polish state,” Lon wrote for the website of religious radio station Radio Maryja.

Lon argued that the Polish central bank was better placed to look after the Polish economy as the members of its Monetary Policy Council, as Poles, were “morally obliged” to care for Poland.

“The ECB, from a Polish perspective, is a foreign bank whose aim is not to care for the Polish economy but for the economy of the euro zone,” he said.

Lon pointed to the Polish central bank’s past monetary policy decisions as evidence of its ability to better manage the country’s economy, for example when it supported growth from 2005-2007 by cutting rates at a time when most central banks were raising them.

Reporting by Alan Charlish Editing by Raissa Kasolowsky

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