Polish president says referendum on euro needed

Nov 19, 2008 at 15:44 | Reuters
WARSAW, Nov 19 (Reuters) - Poland's president said on Wednesday it was "obvious" that Poles must be allowed to vote in a referendum on government plans to introduce the euro in 2012.

Prime Minister Donald Tusk's centre-right government, faced with resistance from the eurosceptic main opposition party to its euro plan, is currently weighing whether to appeal directly to voters, but fears it may fail to win the necessary support.

"2012 is just a slogan. I think the (need for a) referendum is obvious, just as a referendum ahead of our European Union entry (in 2004) was obvious," President Lech Kaczynski told reporters during a visit to the southern city of Katowice.

"There is no need to use PR (public relations) in the matter of euro adoption, there is no need to use misfortunes resulting from the global financial crisis," said Kaczynski, a conservative often at odds with Tusk and his government.

Tusk argues that euro adoption would help shield Poland from the kind of financial turbulence seen during the current global crisis. The zloty has shed some 9 percent against the euro this month alone as investors flee emerging markets.

Kaczynski, echoing many economists, reiterated his view that euro entry in 2012 was "doubtful". A presidential aide recently said Poland should aim for euro adoption in 2015 or later.

Tusk needs the support of the opposition Law and Justice (PiS) party to change Poland's constitution to allow euro adoption, but its leader Jaroslaw Kaczynski -- twin brother of the president -- has refused to cooperate.

PiS says early adoption of the euro could harm Poland's robust econoimc growth by requiring higher interest rates during the preparation process.

PiS has said it would back a referendum on the issue. An opinion poll published this week showed a majority of Poles would not back the government's 2012 target date.

Unlike Britain or Denmark, Poland and other ex-communist EU member states do not have a legal opt-out from the euro, but the timing of entry is left to individual governments.