Government Will Fail To Meet Euro Adoption Timetable

Following the release of updated fiscal data for 2008, it now looks unlikely that the Polish government will be able to meet its ambitious, self-imposed 2012 target date for euro adoption. The latest data reveal that the fiscal surplus surged to 3.9% of GDP in 2008, surpassing the 3% threshold set out in the Maastricht convergence criteria for new eurozone candidates. What is more, given that we project a 2.7% economic contraction for the Polish economy this year, with tax collection implicitly taking a hit and demand for social spending rising, the fiscal shortfall is set to widen this year.

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