As a condition of EU membership, the Copenhagen Criteria require that the Polish banking sector be appropriately adapted to the operation within the uniform EU market of banking services - both in terms of ownership structure (privatisation) and capital standing (consolidation). In this light, the banks have benefited form acquiring reputable foreign strategic investors. At the same time, there is a cost involved, and that is the domination of the Polish banking sector by foreign capital.

Poland's EU accession means that the country will have to adopt the Union's legal framework (acquis communautaire), including its banking laws. This will provide for a stable and safe banking sector - based on the Union's regulations and prudential provisions (equity, solvency ratio, concentration limits, capital adequacy, consolidated supervision). This safety will be additionally enhanced by implementing EU laws on prevention of money laundering. Moreover, EU regulations warrant a very high level of customer protection (deposit guarantee system, consumer credit regulations etc).

Poland's membership in the Economic and Monetary Union - after the convergence criteria have been met (relating to inflation, interest rate, exchange rate, fiscal deficit, public debt) - will mean that the country's economy has been incorporated in the EU structures, and should result in a healthy and stable market economy. It will also entail a sound economic policy, including a monetary policy oriented towards price stability and based on sound public finance.

From the point of view of the central bank, EU membership will secure its complete independence from the public authorities, and the ability to participate in the ECB decision-making process (on joining ESBC and subsequently the Eurosystem). As a member of the European System of Central Banks, NBP will have to contribute appropriately to ECB's equity as well as its official reserves.

When the zloty has been replaced by the euro, banks will be able to enjoy the benefits of a single market with a uniform currency. Those will consist, among other things, in the elimination of exchange rate risk, abolition of transaction costs, increased transparency and comparability of prices, optimal capital allocation. In fact, the implementation of euro-related provisions would be beneficial to Poland even at the current stage - among others, in terms of the security of the economic exchange. It would also facilitate banks' preparations for the introduction of the new curency.

To sum up, the following general conclusions can be drawn with respect to the costs and benefits of Poland's integration with the European structures:

• both the costs and benefits are observable already at the pre-accession stage, albeit on a limited scale;
• in the short run (the pre-accession period) the costs will feature more prominently, while in the long term (after membership has been granted) the benefits will make themselves increasingly felt;
• overall, the benefits of the EU and EMU membership will exceed any costs and potential threats involved.