Euro-Adoption Benefits Becoming Fiction, Poland’s Szczurek Says

Benefits to adopting the euro, such as easier access to capital and foreign funding, are becoming “fiction,” Polish Finance Minister nominee Mateusz Szczurek said in an interview with Dziennik Gazeta Prawna.

Evidence that euro membership offers better financing terms is disappearing and joining the currency bloc now brings extra fiscal commitments through the European Stability Mechanism, Szczurek told the newspaper. Reducing public debt to less than 40 percent of gross domestic product, a policy outgoing Finance Minister Jacek Rostowski backed to help prepare for euro adoption, may not be sufficient, Szczurek said in the interview.

“In my opinion, joining the euro is worth much less than it was before the crisis,” he said, according to Dziennik Gazeta Prawna.

Prime Minister Donald Tusk, whose party is seeking to regain the lead in polls as the economy recovers from its worst slowdown in more than a decade, picked Szczurek, a 38-year-old ING Groep NV economist, as part of cabinet changes under which seven ministers were replaced. Poland hasn’t set a timetable for joining the euro area, with Rostowski repeatedly urging overhauls that would eliminate risks related to the switch.

To contact the reporter on this story: Dorota Bartyzel in Warsaw at dbartyzel@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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