WARSAW, March 22 (Reuters)
Poland's zloty appreciation is no cause for alarm because the economy will be able to adjust, while a stronger zloty can help suppress inflation, a member of the new Monetary Policy Council (MPC), Jerzy Hausner said.

Hausner, a former deputy prime minister and economy minister, cast doubt on the market consensus that Poland could adopt the euro in 2015 and said that the lack of a clear plan to address growing borrowing needs was "playing with fire".
He also said monetary policy would likely remain "boring" for a while, since the central bank's last projection did not provide sufficient ammunition for rate hikes and since growth in 2010 could be more modest than expected.
He added that the MPC should meet the government to discuss possible ways of influencing the currency market in case the zloty gains too fast or volatility is too high.
"Appreciation protects us from inflation. The only threat related would be if the zloty gained too fast and volatility was high. This could be a concern and it may be worth considering how to counteract this," Hausner told Reuters in an interview conducted last week and authorised for release on Monday.
Any action would need to be a joint effort, he said.
"There are areas of possible action when it comes to the currency market, including verbal interventions, real interventions, that could neutralise the appreciation trend."
"Attempts to strengthen a currency are generally doomed to failure, but attempts to weaken a currency can be partially effective."
He underlined that for now he was not worried about the zloty's strength and said that the best remedy for its gains in the future would be euro adoption eliminating all currency risk.
"The economy has adaptive capabilities and will manage to deal with the appreciation... It has managed in the past, it will manage now."
The zloty is 5.4 percent stronger against the euro since the start of the year and is hovering around 15-month highs, underpinned by relatively optimistic growth prospects, as well as expectations for two rate hikes in the second half of 2010.

PROSPECTS
Hausner said the market's consensus that Poland could join the euro in 2015 was complicated by risks to public finances, as well as the raging financial crisis in Greece.
Warsaw's budget deficit is around 7 percent of gross domestic product, more than double the EU's ceiling, and public debt is creeping towards a key safety level of 55 percent of GDP. If breached, this would trigger deep spending cuts.
"Our borrowing needs are growing, our debt is bigger and bigger. For how much longer will there be no serious consequences, no one can tell... we are playing with fire", Hausner said.
"I don't see today any convincing reasons to believe that euro adoption in 2015 is a true and realistic economic policy goal. I don't see a concrete economic programme, I therefore see no practical path of reaching this goal", Hausner said.
He said the growth outlook was rather moderate and said the economy could grow by 2.5 percent in 2010, up from 1.7 percent in 2009, providing a smaller cushion for the debt prospects than the government expects with its GDP forecast of 3.1 percent.
He also said expectations of high growth should not be relied upon to contain fiscal deterioration and growth debt.
The government is now forecasting expansions of 4.5 percent in 2011 as a feature of its plan to cut the budget deficit to the euro zone benchmark of 3 percent of gross domestic product by 2012, from around 7 expected this year.
"Poland's economic situation is now evaluated by the markets positively. This is nice. But such market perception does not mean that nothing bad is happening", Hausner said.
"And faith in strong economic growth that would solve our trouble is not justified. The growing debt is a very serious problem. Spending growth must be stopped."

Writing by Karolina Slowikowska