Poland needs to cut debt before euro adoption - Finance Minister
January 29, 2014
Poland needs to cut its debt before entering the euro-zone, as it needs room for fiscal adjustment in an area with uniform monetary policy, Finance Minister Mateusz Szczurek said on Tuesday.
"If we are dealing with a situation in which ... the interest rate is too low for Poland and too high for another country, then we need mechanisms that would allow for compensating those differences," Szczurek told PAP Polish news agency.
Such compensation mechanisms would first of all involve the freedom to shape the fiscal policy, the minister said.
"So Poland, before it enters the euro-zone, should, in my opinion, have a lower public debt, should be able to compensate cyclical changes, for example by compensating recession and problems in the private sector by increased spending in the public sector," Szczurek said.