Poland in talks on entering first stage of euro, party head says

Poland in talks on entering first stage of euro, party head says Warsaw  - Poland has begun talks with the European Central Bank (ECB) on entering the first stage of adopting the euro currency, the head of the ruling Civic Platform party said on Wednesday.

"Official talks with the ECB on entering ERM-2 (Exchange Rate Mechanism) have been ongoing since several days ago," Zbigniew Chlebowski told the Polish Press Agency PAP.

The ECB and Poland's Ministry of Finance did not comment.

Chlebowski also said Poland enter ERM-2 without needing a change in its constitution, which currently gives the National Bank sole power to distribute money.

"We decided on this step knowing there's no agreement from (opposition party) Law and Justice for changing the constitution," Chlebowski told PAP. "We've decided and we'll risk entry into ERM-2 without changing the constitution."

The eurosceptic Law and Justice said it would support a constitutional change if there was a referendum on Poland adopting the euro in 2012.

A qualifying country is required to spend at least two years in ERM-2 and run a budget deficit that is no more than three per cent of the GDP.

Prime Minister Donald Tusk recently announced the government would work to adopt the euro by 2012, and that the global financial crisis gave Poland more reasons to join the 15-member area.

Earlier Wednesday the Polish finance ministry sold some of the country's euro reserves as the national currency, the zloty, fell against the euro. (dpa)

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