* Polish cbank gov casts doubt on 2012 euro plan []
* Czech cbank gov sees ERM-2 now as "risky" []
* Poland's president has serious doubts on euro []
(Adds Kaczynski comments)
By Jana Mlcochova and Karolina Slowikowska
PRAGUE/WARSAW, Oct 30 (Reuters) - The Czech central bank
rejected fast euro adoption as a shield against the financial
crisis on Thursday, while his Polish counterpart cast doubt on
the government's 2012 euro zone entry plans due to the turmoil.
Their statements highlighted the divergent stances towards
the single currency in Central and Eastern Europe's EU newcomers
as they struggle to deal with the fallout of the global turmoil
following a month of crisis in Hungary.
Polish central bank Governor Slawomir Skrzypek appeared to
cast some doubt on a recently hatched government plan to replace
zlotys with euros in 2012 in comments that dealers said sparked
a selloff in the region's already nervous currency markets.
He said the crisis could lead to straying from the
government's roadmap and that, unlike Slovakia, which is due to
join the euro zone on Jan. 1, 2009, Poland had just begun
preparations.
"It is not ruled out that not all the dates in (the
government's) euro roadmap timetable will be met. It is,
nevertheless, a reflection of the government's aspiration,"
Skrzypek told Reuters in an interview.
"There is lots of work still ahead of Poland."
The zloty lost 0.8 percent per euro from Wednesday's local
close and the forint 1.7 percent. The Czech crown, which had
slid since morning, was down 2.5 percent late on Thursday.
The region had experienced a brief respite following the
announcement of a $25 billion bailout deal for Hungary.
EURO "RISKY"
Among other tasks, Poland must rein in inflation, keep its
budget deficit in control to join the euro area, and ensure its
currency is stable -- a challenge in today's turbulent markets.
It must also change its constitution to adopt the euro, as
its current charter gives the National Bank of Poland the sole
right to print money and conduct monetary policy -- tasks which
the European Central Bank carries out for the euro zone.
The constitution remains the biggest question mark, not
least because President Lech Kaczynski opposes swift euro
adoption and has sought to reverse Polish public support for
euro entry.
"I have serious doubts if we should be deciding on our road
to the euro right now," Kaczynski said on Thursday. The comments
marked a retreat from an earlier statement in which Kaczynski's
top aide said the president was warming to the idea.
Many analysts say the euro has benefitted some of the bloc's
smaller members, which could have been soaked in the economic
storm without the euro umbrella.
Hungary, which turned to the EU and International Monetary
Fund for help after foreign investors ditched its assets due to
concerns over its ability to roll over its high foreign debt,
has said it now wants to join the euro as quickly as possible.
But the Czech government has no euro target, and has said
steps by some euro zone states, such as relaxing fiscal rules,
supported its cautious approach. Czech central bank Governor
Zdenek Tuma backed the absence of a target date and said the
crown had played a positive role for the small, open economy.
"This (crisis) is rather a signal there should be no binding
decision taken now," Tuma told the upper house of parliament.
He also said joining the pre-euro ERM-2 exchange rate system
in the current roller-coaster market environment would be tough.
Once a currency is pegged against the euro in the ERM-2
mechanism, it will need to stay stable for a minimum of two
years, with its central bank obliged to intervene to keep it
within a +/- 15 percent band around a central parity.
Stock markets across the region have also dived, interbank
money market rates have shot up and the government bond market
has nearly dried up, forcing governments to suspend or cut back
on auctions.
Tuma said he saw the biggest risk from the crisis coming
through a possible sharp slowing of economic activity, and while
the Czechs were used to facing appreciation pressures on the
crown, he could also see a scenario where fleeing foreign
investors could cause the region's currencies to weaken.
"If this aversion led to a bigger outflow of capital then it
can cause problems," he said.
(Writing by Michael Winfrey; Editing by Ruth Pitchford,
Patrick Graham, Swaha Pattanaik)
