It seems that for most countries in Europe having your own currency is a bit of an advantage. Poland has certainly benefited from maintaining a flexible exchange rate with the Zloty during the economic crisis. It’s an important factor to consider as the debate on whether to adopt the euro is happening right now.
Poland is the European Union’s largest Easter economy and critically the only member who have managed to stop their economy sinking into recession. There is no doubt that the ability to adapt and implement monetary policy helped the Polish Government sidestep the worst of the economic crash.
The Polish Government hoever did pledge to join the Euro when it joined the EU back in 2004, it is said is still keen to do so. However economists have estimated the effects of being in the Euro during the last five years and it’s a sobering report. The study suggests that the economy would have swung wildly between 6 percent reduction and nearly 10% growth during the last 5 years. Outside the Euro the Polish economy has grown consitently between 1 and 7% in total.
Poland still has it’s problems – unemployment is still around 15% and shows no signs of falling back. This is also despite the huge exodus of Polish workers to other EU countries. There are millions of Poles working abroad, a large proportion in the United Kingdom. This has led to a great demand for Polish goods and services in the UK ranging from food, drink and even a Polish proxy like this – http://www.proxyusa.com/polish-proxy-server so they can watch Polish TV over the internet. It’s a simple process which just involves changing your IP address by sitting behind a proxy server, you can see more here.
One things for sure, the stakes are high for the Euro and if a thriving economy like Poland stalls on joining the Eurozone then it will not look good. The Euro needs strong economies to reinforce the union and the currency alike but will the Polish people be keen on the risk it involves?