I’m quite perplexed as to the attitude of a large portion of economists and commentators concerning Polish Prime Minister Donald Tusk’s decision to intervene and strengthen the standing of the Polish złoty. These ‘experts’ have been vocal in their criticism of Tusk’s decision to help Poland’s currency.
The criticism seems to stem from the fact that Donald Tusk had said the government would intervene if the Polish złoty dropped in value (when 1 euro would equal 5 złoty). The government actually intervened much sooner. The Finance Ministry decided to sell a large quantity of EU funds and by doing so the złoty regained some of its value.
The more I follow the market and the repercussions of the so-called crisis, I see a pattern emerging with regards to many of the EU’s eastern member states. There are market players whose intention it is to weaken the economies and currencies of Poland, Hungary and the Czech Republic and by doing so make a killing at the same time.
The reason behind Tusk’s decision to intervene earlier was obvious – make the move now before these ‘players’ can cut their losses in preparation for the expected intervention. Tusk beat them at their own game and therefore, in my humble opinion, deserves the thanks of most Polish people. He has improved the standing of the Polish currency and economy.
A small group of outside investors see profit in Poland’s loss. It is probably about time that the EU’s politicians and economists begin moving towards stabilising the Polish złoty, the Hungarian Forint and the Czech Koruna. A fall in value of these currencies and weakening of these respective economies can only spell trouble for the European Union. Time to get to work.