By Matt Underwood 
We’re in the top tier now: Poland sees no need to ditch złoty for euro as economy booms. The narrative around Poland’s economic success story is truly compelling, a testament to the country’s remarkable progress since joining the EU. The transformation has been striking, and the growth experienced has undoubtedly improved the quality of life for the average citizen. Poland’s ascent is often compared to its neighbors, highlighting the stark contrast in economic trajectories, particularly when looking at countries like Ukraine, which have been held back by external factors.
The heart of the matter lies in Poland’s decision to maintain its national currency, the złoty, rather than adopt the euro. The złoty, it seems, is a robust currency, and there’s no immediate pressure to switch. While the euro might provide an economic boost, the feeling is that Poland is now thriving on its own terms. The discussion also circles around the substantial financial support Poland has received from the EU. The EU has been a major investor, helping to propel Poland’s growth and bridge the gap with some of the more established “core members” of the EU.
However, a closer look reveals a nuanced picture. While Poland’s growth rate has been impressive, especially when compared to countries using the euro, its nominal GDP, which is a better gauge for international comparisons, places it a bit lower in the rankings, particularly when adjusted for population. It’s a key distinction when comparing Poland’s economy to, say, the Netherlands, which boasts a larger economy despite having a smaller population.
Politically, it’s easy to see why Polish leaders might emphasize the country’s successes. Poland is receiving substantial financial support from the EU, receiving more than it contributes. And legally, as a member of the EU, Poland is obligated to eventually adopt the euro. This commitment raises questions about how Poland views its place within the broader European project. Some worry that this emphasis on economic self-reliance could inadvertently distance Poland from the unity and shared goals of the EU. The potential for Poland to become a major contributor to the EU’s budget in the future further complicates matters.
The timing of this debate is notable, especially as the country’s economic fortunes have shifted dramatically. The initial conditions for joining the EU required the eventual adoption of the euro, a condition which remains in place. This has led some to view Poland’s hesitation with some concern. Concerns arise that a delay in adopting the euro is not necessarily a sign of good faith and could potentially lead to isolation.
The economic implications of staying with the złoty are also worth considering. While the euro can offer advantages, it also removes a government’s ability to devalue its currency, a tool that some countries have used to boost exports. Examples like Italy’s experience highlight the mixed results that can come with adopting the euro. The argument is made that Poland may want to retain the flexibility of its own currency, especially during economic downturns.
Underlying this discussion is the fact that Poland’s success is a product of investment from the West, including the EU. It is an amazing place to visit, and a real success story. This is true for other countries as well. Regardless, Poland’s transformation has been remarkable, it will need to keep up the pace to compete with other EU countries with stable currencies.
Some argue that Poland has benefited from the EU and this is a key reason for their success. The European market gave them access to investment, while Polish firms benefited from access to Western European markets. It’s a two-way street, where everyone involved profits.