Poland in Economic and Monetary Union

Poland is a developing and converging economy. The level of real convergence of Poland with the euro area – i.a. in terms of GDP per capita – is still lagging behind developed EU member states. This would pose a threat of negative shocks affecting the Polish economy after the euro adoption. At the same time the effectiveness of EU reform agenda – although a lot has been done in recent years in reaction to the drawbacks of the Economic and Monetary Union (EMU) – shall still be perceived as unsatisfactory and it seems not to ensure the long-term stability of the EMU. Therefore the focus of the government is currently set on improving the potential of the national economy and not on an entry to the euro area.
As the stability of the euro area is of vital importance for the Polish economy, the government will still be taking part in actions at the EU level aimed at strengthening the institutional setup of the EMU. Fiscal and economic turbulence that was observed in several euro area member states stressed the need for institutional reforms. Actions at the EU level will be conducted along with structural reforms in Poland aimed at fostering competitiveness of the national economy. These actions shall result in avoiding middle-income trap and contribute to sustainable real convergence with developed EU economies.