Poland is obligated to adopt the euro currency at some time in the future as a member of the European Union (EU). However, the country has not yet met the necessary conditions for membership in the eurozone and has not set a date for its adoption. Poland has struggled to adopt the euro for a variety of reasons.
Strong economy
To begin with, Poland has a reasonably strong and stable economy with a low level of public debt, which has helped the country weather successive financial crises. The Polish government has greater control over its monetary policy by having its own currency, allowing for greater flexibility in responding to economic situations and internal market needs.
Fear of loss of control
Second, Poland’s reluctance to accept the euro might be ascribed to the country’s experience with the post-communist economic transition. Poland has only been a market economy for a short time, and there is concern that adopting the euro may result in a loss of control over economic policy and a reduction in the country’s ability to respond to economic crises.
The labor market
Another consideration is the potential impact of Poland’s entry into the eurozone on the labor market. Poland has a big number of citizens working in other EU nations, and the adoption of the euro could increase the cost of living and reduce competitiveness, perhaps reducing the number of Poles working abroad.
Fear of unnecessary economic risks
Finally, there are concerns about the potential impact of the eurozone’s current economic challenges on the currency’s stability. With ongoing challenges such as Greece’s economic difficulties and the uncertainty surrounding Brexit, there is considerable concern that Poland joining the eurozone at this time would expose the country to unnecessary economic risk.
