(Repeats story published late on Thursday)
* Polish president abandons warmer tone on euro []
* Polish cbank chief casts doubt on euro plan []
* Czech cbank gov sees ERM-2 now as 'risky' []
(Recasts, adds analyst and Polish MPC member comments)
By Karolina Slowikowska
WARSAW, Oct 30 (Reuters) - Poland's President Lech Kaczynski
abandoned a surprising pro-euro stance he took in the wake of
the financial crisis that hit central Europe, saying on Thursday
that the single currency would hurt family incomes.
His sudden about-face reduces chances he and the main
opposition party led by his twin brother, Jaroslaw, would back
constitutional changes needed to prepare the way to euro
adoption in the biggest ex-communist European Union member.
The centre-right government of Prime Minister Donald Tusk
launched a roadmap to adopt the euro in 2012 earlier this week.
Several other governments and politicians in central Europe
have warmed to the idea of euro adoption as a shield against
future crises and a way to win back the confidence of investors.
Tusk and Kaczynski held talks on the plan on Tuesday, and
the eurosceptic president took many by surprise saying he saw
some positive aspects of quick euro entry.
His top aide reinforced the positive message on Thursday,
but a few hours later Kaczynski returned to his trademark
eurosceptic rhetoric.
"We must tell the citizens that euro adoption may lead to a
decline in their income of 10-15 percent," Kaczynski told a news
conference in southern city of Tarnow. "I have serious doubts if
we should be deciding on our road to the euro right now."
Asked if he backed technical constitutional changes required
for euro adoption, he said:
"I have not made any declarations regarding it (the change
of the constitution) during the meeting with Prime Minister
Tusk."
In another blow to the government plan, Polish central bank
Governor Slawomir Skrzypek cast some doubt on its viability, in
comments that dealers said sparked a selloff in the region's
already nervous currency markets.
Skrzypek, a Kaczynski appointee, told Reuters in an
interview the financial crisis could lead to straying from the
government's roadmap.
"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 said.
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.
"Such rhetoric (by the president and the governor) hurts the
credibility of the country and makes the entire euro adoption
process more difficult," said Ryszard Petru, an independent
economist in Warsaw.
Skrzypek's words sparked criticism also from a fellow member
of the 10-person Monetary Policy Council, which on Wednesday
backed the adoption of the euro as soon as possible.
"I am more than astonished by the remarks of Governor Slawomir
Skrzypek about delays in the euro adoption process," Dariusz
Filar Filar said.
"It's unfortunate such remarks are made at a time of huge
volatility on the financial markets."
ROLLERCOASTER
The region's currencies and bonds plunged earlier this month
but in recent days they have experienced a respite following the
announcement of a $25 billion bailout deal for Hungary.
Hungary 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.
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.
But while they believe having a credible euro roadmap is
boosting confidence, no country should attempt to rush euro
entry in the current climate.
The sentiment was echoed by the Czech central bank, which on
Thursday rejected fast euro adoption as a shield against the
financial crisis.
Czech central bank Governor Zdenek Tuma backed the
gvernment's policy of not setting 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.
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.
(Additional reporting by Jana Mlcochova, writing by Adam
Jasser and Michael Winfrey; Editing by Kenneth Barry)
