Poland continued to fulfil two convergence criteria required of bidders for the euro-zone in February 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% (unchanged m/m) vs. the reference value of 1.3% (this value was down by 0.6pps on the month).
The other one was the long-term interest rates criterion: the average interest rate for the last 12 months in Poland was 4.1% (up by 0.1pps m/m), i.e. only slightly above the historically lowest level of 3.9%. At the same time, it remained at a level 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.
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