WARSAW, Feb 21 (Reuters) - Poland's entry to the pre-euro exchange-rate mechanism ERM-2 could help stabilise the volatile currency market, Finance Minister Jacek Rostowski told tabloid Fakt in an interview published on Saturday.
Rostowski's deputy, Ludwik Kotecki, told another newspaper on Saturday, that just getting backing for the government's ERM-2 and euro entry plans from the sceptical conservative opposition party could firm the zloty by 20-40 groszy or 5-10 percent.
Poland plans to enter ERM-2 in the first half of his year to pave the way for euro adoption in 2012.
Many analysts have been sceptical whether this is a realistic plan as global turmoil undermines economic and financial stability in the European Union's largest ex-communist member.
'I generally believe that ERM-2 entry would help calm down the market,' Rostowski told Fakt.
But during a visit to neighbouring Slovakia, Poland's conservative President Lech Kaczynski voiced misgivings over Poland's entry into the euro anteroom.
'The crisis cannot be used by certain groups to urge entry into the ERM-2 corridor at all costs. I am sceptical about that,' he told a news conference on Saturday in the Slovakian city of Namestovo.
The zloty has fallen over 10 percent since the start of this year against the euro in a slide that has engulfed others in the EU's eastern bloc amid worries about the state of their economies.
But investors react positively to news that nears Poland to the euro zone despite the slowing economy and deteriorating conditions in the corporate sector.
When head of the ruling party's parliamentary caucus said Warsaw had stared talks about ERM-2 with the European Central bank, the zloty immediately gained.
'If the opposition agreed to the constitutional change, the zloty could firm 5-10 percent within just a few days,' Kotecki told daily Gazeta Wyborcza. 'This is what Poles want now. I hope the opposition...agrees to the legal changes.'
The government has so far failed to secure the required support of the eurosceptical main opposition party Law and Justice (PiS) to amend Poland's constitution, a move required to enter the euro zone but not the ERM-2 antechamber.
The constitution now stipulates that only the National Bank of Poland can set monetary policy and issue money. The European Central Bank takes over these responsibilities in the euro zone.
Some analysts have said, however, that failure to make changes in the constitution before ERM-2 entry could trigger speculative attacks on the zloty while in the grid.
A candidate country must keep its currency in the ERM-2 grid, where it trades within a fixed plus or minus 15 percent band against the euro, for at least two years prior to adoption of the common currency.
European affairs minister Mikolaj Dowgielewicz told daily Dziennik Warsaw may ask the EU to shorten its stay in the ERM 2 grid. He did not say by how much, but the European Commission has already signalled in the past it would probably not agree to the request.
(Writing by Karolina Slowikowska; additional reproting by Rob Strybel) Keywords: POLAND EURO/ (karolina.slowikowska@reuters.com; +48 22 653 9725; Reuters Messaging: karolina.slowikowska.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Rostowski's deputy, Ludwik Kotecki, told another newspaper on Saturday, that just getting backing for the government's ERM-2 and euro entry plans from the sceptical conservative opposition party could firm the zloty by 20-40 groszy or 5-10 percent.
Poland plans to enter ERM-2 in the first half of his year to pave the way for euro adoption in 2012.
Many analysts have been sceptical whether this is a realistic plan as global turmoil undermines economic and financial stability in the European Union's largest ex-communist member.
'I generally believe that ERM-2 entry would help calm down the market,' Rostowski told Fakt.
But during a visit to neighbouring Slovakia, Poland's conservative President Lech Kaczynski voiced misgivings over Poland's entry into the euro anteroom.
'The crisis cannot be used by certain groups to urge entry into the ERM-2 corridor at all costs. I am sceptical about that,' he told a news conference on Saturday in the Slovakian city of Namestovo.
The zloty has fallen over 10 percent since the start of this year against the euro in a slide that has engulfed others in the EU's eastern bloc amid worries about the state of their economies.
But investors react positively to news that nears Poland to the euro zone despite the slowing economy and deteriorating conditions in the corporate sector.
When head of the ruling party's parliamentary caucus said Warsaw had stared talks about ERM-2 with the European Central bank, the zloty immediately gained.
'If the opposition agreed to the constitutional change, the zloty could firm 5-10 percent within just a few days,' Kotecki told daily Gazeta Wyborcza. 'This is what Poles want now. I hope the opposition...agrees to the legal changes.'
The government has so far failed to secure the required support of the eurosceptical main opposition party Law and Justice (PiS) to amend Poland's constitution, a move required to enter the euro zone but not the ERM-2 antechamber.
The constitution now stipulates that only the National Bank of Poland can set monetary policy and issue money. The European Central Bank takes over these responsibilities in the euro zone.
Some analysts have said, however, that failure to make changes in the constitution before ERM-2 entry could trigger speculative attacks on the zloty while in the grid.
A candidate country must keep its currency in the ERM-2 grid, where it trades within a fixed plus or minus 15 percent band against the euro, for at least two years prior to adoption of the common currency.
European affairs minister Mikolaj Dowgielewicz told daily Dziennik Warsaw may ask the EU to shorten its stay in the ERM 2 grid. He did not say by how much, but the European Commission has already signalled in the past it would probably not agree to the request.
(Writing by Karolina Slowikowska; additional reproting by Rob Strybel) Keywords: POLAND EURO/ (karolina.slowikowska@reuters.com; +48 22 653 9725; Reuters Messaging: karolina.slowikowska.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.