The Viability of Joining the Euro Area from Poland's Economic Perspective

Purpose: The aim of this article is a comparative analysis of the key processes of economic development and the competitive position of selected EU countries, both aspiring to and already belonging to the euro area. Design/Methodology/Approach: Comparative analysis of indicators and processes of economic competitiveness of countries and enterprises using statistical data. Findings: On May 1, 2004, ten countries from Central and Eastern Europe, including Poland, joined the European Union. These countries also committed to joining the euro area. Slovenia did so in 2007, Slovakia in 2009, and several more countries in subsequent years. The multi-year period of Slovenia and Slovakia—countries from the former communist bloc operating in the euro area, provides a valuable comparative base for Poland and the Czech Republic, which have not yet decided to join. An additional element in this comparative analysis is the Spanish economy. The research, conducted from a Polish perspective, indicates that maintaining a national currency within the EU, which ensures access to the Single European Market, does not necessarily weaken a country's competitive position and allows for the generation of number developmental advantages. However, this comes partly at the cost of periodically greater challenges in maintaining price stability and higher public debt financing costs. Less clear-cut conclusions can be drawn from the analysis of the economic and social shocks recorded in 2008–2009 and during the COVID-19 pandemic in 2020–2021. Practical Implications: The analysis shows that belonging to the euro area, despite lower transaction costs due to the elimination of currency risk in trade and lower public debt servicing costs, does not automatically translate into higher economic growth dynamics and higher competitiveness of the economy and enterprises. Originality/Value: The analysis statistically verifies, in the medium- and long-term horizon, a number of views and assessments based on short-term events and phenomena. Thus, the balance of benefits and costs of joining the euro area is more reliable.