Polish PM set to fail on reaching euro compromise

Poland's prospects of joining the euro in 2012 dimmed yesterday when the leader of the conservative opposition demanded a referendum on the issue.

Prime Minister Donald Tusk needs the backing of the euro-sceptic Law and Justice party (PiS) if he is to remove a constitutional roadblock to euro entry.

But PiS leader Jaroslaw Kaczynski said in an interview that a referendum on the issue should be held in the summer next year before discussing changes to the Constitution.

"The referendum could take place in June, this would be the best time. It would be best to link it with the European Parliament elections," Mr Kaczynski said.

"If the referendum result was 'yes', which would surprise us, and if the referendum was binding, this would open the door for changes to the Constitution and we would back them."

Mr Kaczynski spoke ahead of a meeting at which Mr Tusk urged leaders of the main political parties to support a euro adoption roadmap that investors, business and the leftist opposition say is Poland's best protection against the global economic crisis.

Mr Tusk had admitted he was doubtful the gathering would produce a breakthrough, though Slawomir Nowak of the ruling centre-right Civic Platform party said euro membership remained the goal for most participants at the meeting.

"The main message from the meeting is that nobody questions the strategic goal which is adopting the euro... I think during the next meeting in December, the sides will get closer in terms of expectations," Mr Nowak said.

Poland's Constitution states its central bank is the only body able to dictate monetary policy and print currency, responsibilities that would revert to the European Central Bank if Poland swaps its zlotys for euros. Under Tusk's plan, Poland would enter the ERM-2 currency grid by the middle of next year, meet all the requirements for euro adoption in 2011, and join the eurozone in 2012.

Opinion surveys show most Poles want the euro, but a majority referendum vote may not be enough.

For such a result to be binding, turnout must be at least 50 per cent - a difficult prospect for Poland, where voter turnout is usually low.