May 22, 2014 / 11:27 AM / in 4 years

Polish C.banker says euro risks still outweigh benefits

LISBON, May 22 (Reuters) - The balance of risks and benefits for Poland from adopting the common European currency is still “slightly negative”, but it is committed to better preparing its economy for joining in, Polish central bank governor Marek Belka said on Thursday.

He told a conference in Lisbon that joining the euro means sharing the currency with Germany and that Poland must ask itself: “Do we feel safe sleeping with the giant?”

“The benefits (of joining the euro) as we saw in the run up to the crisis were stability of exchange rate and lower costs of capital. They still do exist but we now know those can be a trap.”

He said that after the European crisis “we are now much wiser but at same time the balance of risks and benefits of joining the euro still remains slightly negative”.

“We have time to prepare our economy better for joining the euro, which we have committed to. (There is) no date fixed of course,” he said. (Reporting By Daniel Alvarenga, writing by Andrei Khalip)

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