The euro, the official currency for twenty nations within the European Union, collectively known as the Eurozone, represents a significant symbol of European integration. With the exception of Denmark, every EU member state is legally bound to eventually adopt the euro. Currently, six countries are actively progressing towards meeting the criteria for Eurozone membership. This article focuses on one of these nations, Poland, and examines its journey toward euro adoption.
Every two years, or upon special request, the European Commission releases a comprehensive report assessing each country’s preparedness to join the Eurozone. This ‘Convergence Report’ is based on stringent benchmarks encompassing price stability, healthy public finances, exchange rate stability, and convergence of long-term interest rates. These criteria are designed to ensure the economic stability of countries entering the Eurozone and the Eurozone itself.
The latest 2024 Convergence Report highlights progress across all six nations being assessed. However, the report also indicates that as of now, none of these countries, including Poland, fully satisfy all the necessary conditions for euro adoption. While Poland has made strides in various economic areas, it, like its counterparts, still has steps to take before it can join the Eurozone.
According to the 2024 report, specific criteria fulfillment across the assessed nations are as follows: Sweden meets the price stability criterion, while Bulgaria and Sweden fulfill the public finances criterion, with Czechia expected to join them. Bulgaria, Czechia, and Sweden also satisfy the long-term interest rate criterion, and Bulgaria meets the exchange rate stability criterion. It’s important to note that while Poland is not specifically mentioned as fulfilling any criteria in this summary, the overall report acknowledges progress in all six countries, implying Poland is also moving forward, albeit not yet meeting all benchmarks.
The decision on whether a country is ready to adopt the euro rests with the Council of the EU, based on the Commission’s convergence reports. Croatia was the most recent country to adopt the euro in 2023, demonstrating the ongoing evolution of the Eurozone. For Poland, the path to euro adoption requires continued economic convergence and meeting all the stipulated criteria.
The euro is a major global currency, second only to the US dollar, and is used daily by almost 350 million Europeans. Interestingly, recent surveys show that a majority of citizens in EU countries outside the Eurozone believe that adopting the euro would bring positive benefits to their country and themselves personally. Across these nations, 58% of respondents express support for euro adoption in their respective countries. As Poland continues its economic development and integration within the EU, the question of euro adoption remains a significant aspect of its economic future.
For more information:
Press release: Convergence Report reviews Member States’ progress towards joining the euro area
