Soft Dollar - Hard Złoty

During three months, Poland lost over 10bn zloty out of 67.7bn euro of EU subsidies that it will receive in 2007-2013. The strengthening zloty is to blame – in August, 1 euro cost about 3.8 zloty; now – 3.63 zloty.

If the new government does not decide to reform the economy, experts predict a further rise of the value of zloty against the euro. Until the end of 2008, Poles may only pay 3.4 zloty for 1 euro, which means that with the same money from the EU, the country will be able to finance fewer projects.

On the other hand, a strong zloty is a sign of investors' trust and of a good economic situation. What is more, Poland has to pay a smaller contribution into the EU budget.

Economists say that the solution to the problem could be entering into the Eurozone, which, according to prognoses, could happen as soon as 2012.

Source: Polskie Radio