Poland says it will meet euro requirements in 2007, two years earlier than previously planned

Poland on Tuesday projected that it will meet the requirements for adopting the 13-nation currency this year — two years earlier than originally planned.

Finance Minister Zyta Gilowska said a revised plan adopted Tuesday foresees that the general government deficit will fall to the euro-eligibility ceiling of 3 percent of gross domestic product in 2007, down from 3.9 percent last year.

The deficit will then stabilize at 3 percent of GDP in 2008 before dropping to 2.8 percent in 2009 and 2.5 percent in 2010, Gilowska said at a news conference.

Poland's previous version of the convergence plan, issued in January, assumed a budget deficit of 3.4 percent of GDP this year, 3.1 percent in 2008, and 2.9 percent in 2009.

Warsaw has set no concrete date for joining the common currency.

Poland's booming economic growth — expected to reach 6.5 percent for 2007, up from 6.1 percent in 2006 — has narrowed the budget gap as revenue has soared.

The updated convergence plan forecasts GDP growth will slow to 5.5 percent next year from an expected 6.5 percent in 2007.

The plan also forecasts that the jobless rate will fall to 4.8 percent in 2010, from 11.7 percent in September this year.

Soource:The Associated Press, iht.com