|
|








|
|
2009-03-03 00:00:00
|
Poland renewed its commitment to early accession into the eurozone yesterday amid signs the financial crisis had prompted European Union leaders to consider shortening the entry process.
Warsaw's declaration came after Sunday's EU summit, where some leaders indicated they would consider Hungary's proposals to reduce the two-year period candidates are asked to spend in the Exchange Rate Mechanism-2 preparing for euro entry.
Amid tense scenes, EU leaders rejected separate Hungarian plans for an east European banking bail-out but the summit backed a case-by-case approach to aid. Some taking part suggested a review of the time spent in the ERM-2, though not a relaxation of other euro entry criteria.
The rejection of the €180bn (£160bn) bail-out plan hit east European currencies, which fell yesterday, led by a 2.5 per cent drop in the Hungarian forint.
While Poland, which wants to adopt the euro by 2012, might benefit from a shorter ERM-2 wait, Warsaw made clear it did not necessarily support the suggested possible change in the entry rules. "We have not changed our position at all. We want to join ERM-2 in the first half of the year, if market conditions permit," Jacek Rostowski, Poland's finance minister, told the Financial Times.
Poland's tough approach, which is shared by the Czech Republic, reflects its policy of differentiating itself from the more troubled countries of the region, including Hungary. Warsaw and Prague both reacted cooly at the summit to Budapest's bail-out and ERM-2 proposals.
"We have to see that every single country is in a different position and the impact of the crisis is different," said Jiri Frantisek Potuznik, a Czech government spokesman.
Mr Rostowski said: "We think that a one-size fits all approach to the region is not right. What is needed is differentiation. Countries should be helped according to their needs, whether they are in eastern Europe or in western Europe."
In spite of the concern about central Europe's stability, some officials in the region argue that weaker eurozone countries including Ireland, are in worse shape than Poland or the Czech Republic.
At the summit, some EU leaders indicated they were open to the idea of shortening the period spent in ERM-2. "There are requests to enter ERM-2 faster. We can look at that," Angela Merkel, Germany's chancellor, said.
The European Central Bank would not comment, but it is likely to demand a strict interpretation of the eurozone entry rules.
|
|
|