Poland still fulfils two convergence criteria required for euro-zone in May

By bne IntelliNews July 7, 2014

Poland continued to fulfil two convergence criteria required of bidders for the euro-zone in May of 2014, the ministry of finance said in its monthly Nominal Convergence Monitor. Poland has continued to fulfil these two criteria for over a year now.

The first of these criteria was the price stability criterion: Poland's average 12-month HICP inflation was 0.6% (unchanged m/m) vs. the reference value of 1.5% (this value was down by 0.2pps on the month).

The ministry stresses that the European Commission's forecasts stipulate that Poland will fulfil this criterion throughout the entire forecasting period, i.e. till Q4 of 2015.

The other criterion that continues to be fulfilled is the long-term interest rates criterion: the average interest rate for the last 12 months in Poland was 4.3% (up by 0.1pps m/m), i.e. only slightly above the historically lowest level of 3.9%. At the same time, it was at a level by 2.2pps lower than the reference value (vs. 2.0pps a month before), the ministry said.

The fiscal criteria remain unfulfilled as Poland is still under the excessive deficit procedure. However, the ministry notes that the European Commission's newest forecasts suggest that Poland will manage to fulfil the fiscal criterion in 2016 (on the basis of 2015 data).

The country does not fulfil the FX criterion as it has not entered exchange rate mechanism ERM2 yet.

When Poland joined the European Union in 2004, it obliged itself to take on the euro, but with no time restraints.

Related Articles

Polish ruling party's poll lead hit by EU spat

The popularity of Poland’s ruling party Law and Justice (PiS) has fallen below 30% for the first time since mid-2014, a poll showed on March 20. The survey, published by liberal newspaper ... more

Enea buys French utility out of Poland

Enea has acquired a 100% stake in Engie Energia Polska - the Polish business of French power company Engie - for PLN1.26bn (€290mn), the state controlled Polish utility said on March 14. The ... more

EU asks CEE to comment on Russian gas promises

The European Commission has invited comments from Central & Eastern European states on proposals put forward by Russian gas giant Gazprom to meet competition concerns. Visegrad and the Baltic ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss