It appears that some EU member countries are calling the bluff on the euro, arguing that it may be time to abandon the sinking ship due to its impoverishing effects on smaller economies.
According to Polish Foreign Minister Zbigniew Rau, the EU needs to reform its policies so that member nations can return to using their domestic currencies in lieu of the euro. “The equality of member states requires the restoration of equal opportunities for their development, which, in turn, should lead to the reform of the Eurozone. The radicalism of this reform cannot a priori exclude any solutions, such as … a temporary or permanent return of some of the Eurozone member countries to national currencies,” he was quoted as saying by the Rzeczpospolita newspaper this week.
The Polish government previously warned that by transitioning to the euro, the country’s citizens would be disproportionately left poverty-stricken. Although Poland did not adopt the euro when it joined the EU in 2004, it has been postponing bringing the single currency into circulation as is allowed by the Treaty of Accession. However, all new members of the EU must also join the eurozone, meaning that the Polish zloty will eventually have to be replaced by the euro.
In the meantime, though, Poland’s current government continues to oppose becoming a eurozone member, arguing that the country must maintain “its independence and sovereignty.”
Information for this briefing was found via Rzeczpospolita and twitter. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.