About the report:
Cost-benefit analysis of delaying currency integration. By joining the European Union, Poland undertook to adopt the common currency, but no government has given the date of its introduction into the national circulation. The report presents the costs and benefits of delaying the monetary integration. It differs from other publications as it does not answer the question "whether to adopt the euro?" but "what is the balance of costs and benefits of delaying monetary integration?" The costs and benefits are divided into three categories: measurable, potential and unmeasurable.
Key conclusions:
- The balance of measurable costs and benefits shows that adopting the euro would already give the economy an additional growth impulse. The ratio of measurable costs and benefits suggests that adopting the euro could give Poland an increase of 0.7 per cent of GDP.
- Premature and badly prepared currency integration may translate into economic losses many times higher than the measurable gains from the early adoption of the euro. According to estimates in the long term, GDP would be 7.5 per cent lower.
- Currency integration preceded by sound institutional preparation would bring Poland an additional growth stimulus for the next decades - GDP could be higher by as much as 7.8 per cent.