EurActiv Logo
EU news & policy debates
- across languages -
Bulgaria News
Turkey News
Germany News
Spain News
France News
United Kingdom News
Poland News
Czech Republic News
Slovakia News
Hungary News
Romania News
Serbia News
Greece News
Italy News
Bulgaria Turkey Germany Spain France United Kingdom Poland Czech Republic Slovakia Hungary Romania Serbia Greece Italy
EurActiv.com Network

BROWSE ALL SECTIONS

Poland set to adopt euro convergence plan

Published 03 February 2010
Printer-friendly versionSend to friend

Polish Prime Minister Donald Tusk said he expected his government to approve today (3 February) an updated euro convergence plan, shrugging off concerns voiced by the junior coalition partner over the measures proposed.

The cabinet had been expected to approve the plan, a blueprint for eurozone accession which is periodically updated, at Tuesday's weekly meeting but the Peasants' Party (PSL) is unhappy about Tusk's proposal to reform farmers' pensions.

"I hope we will approve the convergence plan tomorrow. Everything indicates we shall," Tusk told a news conference.

Asked about the disagreement with PSL leader Waldemar Pawlak, Tusk said: "I don't think there is conflict in the coalition. Our temperaments are complementary and we understand each other very well, even when we have differing views."

"I think the concerns of PSL over the pension system changes are baseless," he added.

As part of a drive to reduce the government's budget deficit to 3% of gross domestic product by the end of 2012, Tusk has proposed bringing farmers, a privileged group in Poland, into the national pension system. This would require them to make bigger monthly contributions.

With parliamentary elections due in 2011 and opinion polls showing support for PSL hovering around the 5% threshold needed to enter parliament, Pawlak needs to show farmers, his party's base, that he is ready to fight for their interests.

Tusk added that if economic growth came in lower than forecast over the next few years Poland might only manage to bring its deficit down to the 3% of Gross Domestic Product level required under EU rules in 2013, not in 2012.

Last week, the government unveiled a fiscal consolidation plan that would cap budget spending and speed up the sale of state assets in order to check a sharp rise in public debt and to prepare the country for eurozone entry.

Analysts polled by Reuters see Poland, the EU's largest ex-communist country, joining the euro zone in 2014. Government officials have recently said 2015 is a realistic date.

Tusk also announced last week that, contrary to expectations, he would not run in a presidential election due this autumn because he wanted to focus on tackling Poland's economic problems as head of the government.

On Tuesday, Tusk confirmed that his centrist, pro-euro Civic Platform (PO) would probably field either Foreign Minister Radosław Sikorski or the speaker of the lower house of parliament, Bronisław Komorowski, as its presidential candidate.

"They each have different assets and I am not going to tell you who is my favourite," Tusk said, adding that he would not impose his own preference on the party.

In Poland, the prime minister and the government hold most power but the president can veto laws and also represents the country on the global stage. The PO wants to unseat President Lech Kaczyński because he has blocked a series of government reforms.

(EurActiv with Reuters.)

Positions: 

Poland is the only country in Europe to have come through 2009 without experiencing recession, Polish Finance Minister Jacek Rostowski writes in the Wall Street Journal. According to him, other countries can draw lessons from Poland's success.

"The larger share of small and medium-size, owner-managed firms in Poland's economy certainly played an important role in the country's success. Poland's work force has one of the largest shares of entrepreneurs in all of Europe, and they proved highly resilient to the shock of the crisis, and flexible in their response to it. By rapidly cranking up the absorption of EU funds, the government also helped maintain demand and sustain investment," Rostowski writes.

The minister stressed that Poland was probably the only country in Europe which could afford to finance a stimulus programme, but decided not to.

"The aim of these highly orthodox (but at the time atypical) measures was to re-establish investor confidence in the country, at a time when central and eastern Europe was (wrongly, as it turned out) viewed as highly crisis-prone," Rostowski explains.

He adds that throughout the crisis, Poland continued with its multi-year deregulation drive: privatising remaining state-owned companies, simplifying tax laws, cutting tax rates and reducing bureaucratic hurdles to business.

"Instead of a stimulus package, it enacted an effective savings programme, as well as implementing several key structural reforms. That is the 'secret' of Poland's success," its finance minister concludes.

Background: 

Central and East European countries have been pressing for speedier accession to the euro zone in order to hasten their economic recovery. Poland in particular (EurActiv 01/03/09) but also Bulgaria (EurActiv 09/03/09) say they do not need bailouts, but rather admission to the Exchange Rate Mechanism (ERM II), the eurozone waiting room, to resolve their problems. 

However, the EU has been reluctant to offer special conditions for joining the single currency, and has preferred to deal with its crisis-hit new members on a case-by-case basis. 

Since the bloc's 2004 enlargement, Slovenia, Cyprus, Malta and Slovakia have joined the euro zone. On 1 January 2009, Slovakia became the sixteenth country to adopt the EU's single currency (EurActiv 05/01/09).

More on this topic

More in this section

Advertising