Poland's Economic Growth Weakens Plans to Adopt Euro Instead of Złoty

In an interview with the Financial Times, Polish Finance Minister Andrzej Domański stated that the arguments in favor of switching to the euro have significantly weakened, as the country's economy is now demonstrating better results than most Eurozone states. According to Domański, the government has increasingly more economic data and analytical reasons to retain the national currency for now.

The topic of switching to the euro has a long and complex history in Poland. Already in 2008, Donald Tusk promised to introduce the single currency by 2012, but the European debt crisis forced these plans to be postponed. Later, the national-conservative Law and Justice party turned the złoty into a symbol of protecting state sovereignty.

Today, Tusk's government, which returned to power in October 2023, is also not rushing with currency reform: the złoty's position has strengthened, and the majority of Poles, according to surveys, still oppose the euro.

However, as Domański emphasizes, the main reason for the lack of movement towards the euro is not political, but economic. He admits that a few years ago he feared Poland would find itself "on a second tier" of the EU outside the Eurozone, but now believes the country has already entered the top economic league.

Formally, EU countries that have not yet adopted the euro are obliged to do so after fulfilling the convergence criteria — primarily budgetary discipline and financial stability. However, Domański reminds that submitting an application and specific deadlines remain a political decision, and Warsaw sees no need to rush.

For comparison, Bulgaria, which joined the EU in 2007, became the 21st Eurozone country this year. Poland, however, is betting on something else — increasing its weight in the global economy. The government declares its intention to secure a permanent seat in the G20. This year, Poland has already been invited to the G20 summit in Miami as an observer at the initiative of the administration of US President Donald Trump.

Павялічыць

Złoty to Euro exchange rate dynamics after Donald Tusk's coalition victory in parliamentary elections. Source: FT

According to IMF estimates, last year Poland became an economy with a volume of about $1 trillion and ranked 20th in the world. The Organisation for Economic Co-operation and Development forecasts Poland's GDP growth at 3.4% in 2026, which is the fastest rate among EU countries.

However, budget problems remain. The European Commission expects Poland's budget deficit to decrease from 6.8% of GDP in 2025 to 6.3% in 2026. However, this is still more than double the 3% threshold required for Eurozone accession, as defined by the Maastricht Treaty.

Domański asserts that the situation with public finances is gradually improving, thanks in part to a strong labor market and rising wages, which generate more tax revenue.

Despite economic successes, Donald Tusk's government is forced to operate in an atmosphere of fierce internal opposition from President Karol Nawrocki, who represents the opposition Law and Justice party. The President vetoes government bills and challenges the 2026 budget in the Constitutional Court. Domański warns that such actions could harm the country's credit rating, as international agencies closely monitor institutional stability in Poland.

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