Government Members of Parliament in Poland are laying the groundwork for a potential showdown with the European Central Bank (ECB) as they unveiled proposals for a state tribunal to investigate Adam Glapiński, the head of the central bank. Leading associates of Prime Minister Donald Tusk have alleged that Mr Glapiński engaged in a monetary strategy that financially supported the previous administration. These actions encompass a programme of bond purchasing, alleged to be violating the constitution.
Speaking on Thursday, Deputy Prime Minister Krzysztof Gawkowski suggested that these severe allegations would likely lead to a state tribunal, with the necessary 115 signatures already collected. As anticipation grows for the full parliamentary vote to arrange the tribunal, Adam Glapiński, who serves as the president of the National Bank of Poland (NBP), vehemently denies any misconduct and has criticised the allegations as having political underpinnings.
Mr Glapiński has been charged with a series of accusations, aligning with the bank’s purchase of Polish treasury bonds from two state entities, a development bank and an investment fund during the recent global health crisis. In response to this strategy executed by Mr Glapiński, MPs in the government argue that it contravenes the Polish constitution because it indirectly funded a budget deficit estimated at around 144 billion złoty (equivalent to €33 billion).
Additionally, he faces accusations of reducing interest rates ahead of the elections in September and October of the previous year, allegedly to win voter favour and from unauthorised participation in the currency market. Government MPs assert that the bank president applauded the previous administration of Mateusz Morawiecki, whilst cautioning against the current government led by Donald Tusk.
Thursday’s decision further illuminates the complex issues faced by the Tusk administration. Repeated assertions have been made since December, criticising the government’s actions as detrimental to the rule of law. Conversely, the government affirms its actions are rectifying violations made by the previous administration.
Last year, the Law and Justice (PiS) party sought to prevent future parliamentary investigations into the bank and its president before stepping down, Mr Glapiński is a known associate of PiS chairman Jaroslaw Kaczynski. In a move earlier this year, the constitutional court tribunal complicated matters further by making it more difficult to bring Mr Glapiński to a parliamentary tribunal. This constitutional court is observed by the Tusk administration as a politically influenced institution, subservient to PiS politicians, and therefore its rulings have frequently been dismissed.
Government members in parliament have alleged that the bank’s chief has shown support for the previous administration under Mateusz Morawiecki while casting doubt on the leadership of current premier, Donald Tusk. However, any actions against the bank president, Mr Glapiński, at the current time may be perceived by those in Frankfurt and Brussels as a breach of treaty stipulations safeguarding the autonomy of a central bank.
Poland is actively working towards restoring the principle of law and order. Prior to the recent actions taken on Thursday, the head of the European Central Bank (ECB), Christine Lagarde, informed the Polish banking chief that he could raise any form of dispute against him to the European Court of Justice if such disputes appear to undermine the bank’s political autonomy.
Moreover, the bank’s monetary policy, regardless of its contentious nature, has significantly aided in reducing inflation to 2.8% this month, squarely meeting the bank’s target bracket of between 1.5 and 3.5 percent.
Opposition party members from PiS argue that the Polish National Bank’s (NBP) bond purchases during the initial phase of the pandemic were in no way unique, mirroring similar actions undertaken by various states in the Eurozone.