Poland fulfils two convergence criteria required for euro-zone in January

By bne IntelliNews March 14, 2014

Poland continued to fulfil two convergence criteria required of bidders for the euro-zone in January of 2014, the ministry of finance said in its monthly Nominal Convergence Monitor. Poland has continued to fulfil these two criteria for nearly a year now.
The first of these criteria was the price stability criterion: Poland's average 12-month HICP inflation was 0.7% (down by 0.1pps m/m) vs. the reference value of 1.9%.
The other one was the long-term interest rates criterion: the average interest rate for the last 12 months in Poland was 4.0% (down by 0.1pps m/m), i.e. only slightly above the historically lowest level of 3.9%. At the same time, it was by 1.4pps lower than the reference value, the ministry said.
The fiscal criteria remain unfulfilled as Poland is still under the excessive deficit procedure. It does not fulfil the FX criterion as it has not entered exchange rate mechanism ERM2 yet.
In late 2013, the Economic and Financial Affairs Council (ECOFIN) approved of the European Commission's recommendation to postpone Poland's deadline for withdrawal from the excessive deficit procedure by one year to 2015.
When Poland joined the European Union in 2004, it obliged itself to take on the euro, but with no time restraints.

Related Articles

EU top court rules Poland broke law by logging in ancient forest

Poland broke EU law by increasing logging in the ancient Bialowieza Forest under a pretext of fighting spruce beetle, the Court of Justice of the European Union (CJEU) ruled on April 17. The ... more

S&P raises Poland’s outlook to positive on rosy prospects of economy in 2018

Standard and Poor’s raised its outlook for Poland from stable to positive on April 13, while maintaining the country’s rating at BBB+.  The raising of the outlook is based on ... more

Finland gives final nod to construction of Nord Stream II

Finland has issued a second and final permit for the construction of the controversial Nord Stream II pipeline that is to pump gas from Russia directly to Germany via a Baltic Sea route, the Regional ... more

Dismiss