Poland Anticipated to Accomplish Long Lasting Growth after Adopting the Euro

Poland is the second-largest Non-Euro Zone EU economy, after the U.K., and more importantly, the sole EU economy to avoid a recession in 2009. Poland could possibly turn out to be a beacon of economic success in the single currency Euro Zone, according to Standard and Poor’s rating, as published in a recent report outlining the effect of Poland's possibility of Euro adoption.

“The longer-term benefits associated with joining the currency union, for example, improved trade, stronger competition, as well as greater access to financial markets, may possibly lead to stronger growth and which will have positive rating implications,” S&P wrote.

The agency declared that Euro membership would give Poland access to a reserve currency, along with the capability to issue debt in it, which would be positive for the ratings.
S&P anticipates that the qualification for a successful Euro adoption is likely to be a competitive overall economy, with versatile labor and product markets, extensive financial buffers, as well as a political consensus in favor of becoming a part of the currency union.

“The Eurozone  crisis demonstrated that Euro nations require a competitive overall economy with significant financial buffers together with wide public support for the common currency to stand up against the consequences of a deep recession. In the long run, the consequence of euro adoption could very well be positive for development in Poland. It can certainly boost Polish exports as well as attract increased foreign direct investment ( FDI) , further aligning Poland's economy with its wealthier Central European neighbors”.