ECONOMICS AND POLITICS OF CONVERSION OF ZLOTY FOR EURO

Abstract

Of the 11 post-socialist states that have already become European Union members only five have joined the Eurozone common currency. The other six, including Poland, the region’s largest economy, have, pursuant to accession treaties, the right and obligation to adopt euro as their currency. For the time being, they fail to exercise their right and meet their obligation, which has both causes and consequences. These are economic and political in nature and that is why there is no certainty about how the situation will evolve in future. However, from both of those perspectives, and especially for economic reasons, Eastern European EU members should join the Eurozone, as the resulting benefits, not only for Poland, significantly outweigh the conversion costs. Thus, new countries, especially Poland, adopting euro would have a positive impact on the European integration process, which is experiencing a serious structural, institutional and political crisis.