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POLAND: Eurozone Reform

France and Germany are currently negotiating a common position regarding the future functioning of the eurozone. On Saturday, French Finance Minister Bruno La Maire stated that an agreement is “at arm’s length” – it is expected to be finalized on Tuesday when Emanuel Macron visits Berlin to meet with Angela Merkel. In 2017, President Macron appealed for a eurozone reform and proposed several changes, amongst others a separate budget for eurozone countries and the office of a Eurozone Finance Minister. A rough budget level has been agreed, but its source remains uncertain. Details on the French-German agreement are expected to be presented during the upcoming EU summit on 28-29 June.

Fears of a two-speed Europe have circulated since the beginning of the migration crisis. A eurozone overhaul seems to reflect this policy. Warsaw fears that the position of non-eurozone countries will diminish as states with the common currency integrate further. The reforms, if fulfilled, will become a catalyst for a further implementation of the euro currency in new member states, which will bid to remain in the inner circle. By joining the EU, Poland has promised to adopt the euro, however, no clear deadline was set. Though Poland meets most convergence criteria, politicians and the society remain skeptical.