May 22, 2019 / 11:08 AM / 4 months ago

UPDATE 1-Poland's central bank head says won't allow euro adoption

(Updates with quotes, political context)

WARSAW, May 22 (Reuters) - Poland’s central bank governor Adam Glapinski said he would not allow the country to apply for membership of the euro zone while he was in his current job.

Glapinski, whose term runs until 2022, has long opposed euro adoption. But Wednesday’s comments, made as a national debate over the single currency gains in prominence as a campaign issue for this week’s European Parliament elections, were his most unequivocal yet on the issue.

“We will not give up on the zloty (currency), because it will dramatically limit growth opportunities for the Polish economy,” Glapinski told reporters.

“Regardless of who is governing Poland, for as long as I am in charge of the central bank we will not enter the euro zone”.

He would also prevent Poland from joining ERM-2, a waiting room for euro zone membership where candidates countries must spend at least two years to demonstrate their economic stability.

Entering ERM-2 would need approval from the finance minister and the central bank’s monetary policy council, he said.

Poland’s governing eurosceptic Law and Justice party (PiS) opposes the euro, arguing that adopting it would make Poles poorer by pushing up prices.

The main opposition party, the centrist Civic Platform, favours an open debate on the euro and says voters would need to be convinced of its benefits before the country adopted it.

An Instytut Badania Spraw Publicznych opinion poll for private Radio Zet published in April showed 58 percent of Poles prefer to keep the zloty.

Under EU law, Poland is required to adopt the euro as its currency but the government is free to decide when.

Glapinski said the present zloty rate against the euro was relatively stable and that a flexible rate was beneficial for the economy, as its cycle fluctuated.

Reporting by Pawel Florkiewicz and Alan Charlish, Writing by Marcin Goclowski and Joanna Plucinska; Editing by John Stonestreet

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below