Bloomberg News

Poland Can Grow 4% While Euro Has ‘Lost Decade,’ Newsweek Says

January 03, 2012

Jan. 2 (Bloomberg) -- Poland’s economy can grow at a 3 percent to 4 percent rate even if the euro area has a “lost decade” of zero economic growth, so long as the currency bloc doesn’t fall apart, Finance Minister Jacek Rostowski was quoted today as saying in the Polish edition of Newsweek magazine.

European Union treaties need to be changed to allow the European Central Bank to buy bonds of EU members whose ability to finance debt is threatened by financial market contagion, rather than fiscal mismanagement, Rostowski said, according to the magazine.

“The truth about this crisis is that Italy, Spain, France and Germany are all solvent at 3 percent yields, while none of them - not even Germany - is solvent at 8 percent,” Rostowski said, according to Newsweek.

There’s no legal ban on Poland’s central bank buying government bonds and the bank could do so as a “short-term measure” in case yields were driven up by a financial-market panic or contagion from an external crisis, the magazine quoted Rostowski as saying.

To contact the editor responsible for this story: David McQuaid at dmcquaid1@bloomberg.net


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