While the euro is the official currency for 20 of the 27 European Union member states, forming the Eurozone, not all EU members have adopted it yet. Poland, alongside Bulgaria, Czechia, Hungary, Romania, and Sweden, is committed to joining the Eurozone but currently operates with its national currency, the złoty. A recent European Commission report assessed the progress of these six nations towards meeting the criteria for euro adoption, offering insights into Euro In Poland and its current economic standing relative to the Eurozone.
The European Commission’s 2024 Convergence Report evaluates each country based on stringent economic benchmarks. These benchmarks, essential for maintaining the stability of the Eurozone, include price stability, sound public finances, exchange rate stability, and long-term interest rate convergence. The report indicates that Poland, like the other assessed countries, is making strides in certain areas but still needs to fulfill all conditions before adopting the euro in Poland.
According to the 2024 report, Poland currently meets the long-term interest rate convergence criterion. However, Poland, unlike Sweden and Bulgaria, has not yet fulfilled the public finances criterion. Sweden stands out by meeting both the price stability and public finances criteria, while Bulgaria uniquely meets the exchange rate stability criterion due to its currency peg to the euro. Czechia also joins Bulgaria and Sweden in meeting the long-term interest rate criterion. Despite progress, the report underscores that euro in Poland is not yet imminent as the country needs further economic alignment with Eurozone standards.
These convergence reports are pivotal in the Eurozone enlargement process. Issued biennially, or upon a specific country’s request, they serve as the basis for the Council of the EU’s decision on whether a nation is ready to adopt the euro. Croatia was the most recent country to join the Eurozone in 2023, highlighting the ongoing, albeit gradual, expansion of the Eurozone. For euro in Poland, the path involves consistent economic reforms and policy adjustments to satisfy all convergence criteria.
The euro’s significance extends beyond the Eurozone, being the second most-used currency globally, facilitating trade and financial transactions for approximately 350 million people daily. Public opinion within non-Eurozone EU members, including Poland, shows a growing understanding of the potential benefits of euro adoption. A recent survey indicates that a majority of citizens in these countries believe introducing the euro would positively impact their nation and themselves personally, with 58% overall favoring euro adoption in their country. As euro in Poland remains a topic of national discussion, these broader European sentiments and the ongoing convergence process will likely shape Poland’s future decisions regarding euro adoption.
