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Monday, April 15, 2024

Adam Glapiński before the State Tribunal (TS)? The President of the National Bank of Poland sends a letter to Donald Tusk

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The President of the National Bank of Poland, Adam Glapiński, announced in an interview for the Financial Times that he would send a letter to Prime Minister Donald Tusk, trying to end the increasingly fierce dispute which – as the head of the central bank warned – is damaging the country's international image. – The elections are over. It's time to end this. We have common problems, Glapiński said.

Glapiński added that he “has nothing to hide” and “of course” is ready to defend his actions before the State Tribunal if his offer of a truce is rejected.

Charges against Glapiński

As “FT” reminds on Monday, Tusk's government claims that Glapiński abused his powers to help Law and Justice win the elections last October, and Tusk's attack on Glapiński is part of his broader effort to remove people loyal to PiS from the state apparatus. Tusk announced that the ruling of the Constitutional Tribunal, which found that the parliament cannot force the head of the NBP to appear before the State Tribunal, would not stop the government from prosecuting Glapiński.

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Coalition MPs recently brought charges against him for alleged offenses, including: unlawful purchase of government bonds and misleading accounting. Glapiński denies all allegations. Moreover, the National Bank of Poland reduced interest rates by 0.75 percentage points a month before the elections, when inflation was still double-digit, which, according to the current ruling coalition, was politically motivated.

– I understand that for Tusk the easiest way to manage the campaign was to accuse the government and the central bank of causing inflation because it was so high. But the elections are over. It's time to end this. We have common problems, Glapiński said in an interview with “FT”.

In response to accusations that he was politically biased, Glapiński replied: “I do not believe that anyone in Poland could accuse the central bank of unfair monetary policy towards inflation or bond purchases.” He added that some of the allegations were “idiotic” and “have changed many times.”

– I hope that Mr. Tusk will change his mind. He is not an economist. Inflation is approaching the target. I will send a letter to Mr. Tusk to say that there are so many misunderstandings and so many bad words that have been said on both sides that I think it is time to meet and talk, he announced.

Glapiński “is not ready to resign”

Glapiński said that bringing him before the State Tribunal would be “very bad for Poland” and added that he was “not ready” to resign because it could be perceived as an admission of guilt.

Defending the decision to reduce interest rates in September, Glapiński pointed out that Hungary reduced interest rates even earlier, and inflation in Poland dropped to 2.8% in February, which is within the target range of 1.5-3.5%. He said that inflation was falling faster than forecast, and there was a belief among members of the Monetary Policy Council that the rate cut “should have been announced a month or two months earlier.”

He added that the bank would maintain rate cuts this year if the new government did not promise to abolish energy and food subsidies, which – as he warned – could result in inflation rising to 8%.

Glapiński denied that NBP bought bonds directly from the government, which would be illegal, and said it only did so on the secondary market through publicly announced auctions, as many other central banks did during the Covid-19 pandemic. – We did it solely for monetary policy purposes. But we also avoided mass bankruptcy in the economy, he explained.

The third objection concerns Glapiński's forecast that the central bank will achieve a significant profit in 2023. Instead, it suffered a loss, but the previous PiS government included a large central bank dividend in its pre-election budget plans. Glapiński said that his profit forecast from August last year was an “informal” guidance for the Ministry of Finance and “99% uncertain.” He said the situation changed “completely” later in the year when it became clear there would be a loss, mainly due to changes in exchange rates.

Application for the State Tribunal for the President of the NBP

Prime Minister Donald Tusk announced on Tuesday that “the application for the State Tribunal for Adam Glapiński is prepared and ready.” – It will be submitted in the coming days – announced the head of government during a press conference after the meeting of the Council of Ministers.

During Thursday's edition of “Piasecki's Interview”, Konrad Piasecki, who unofficially obtained the content of this application, said that the document contains “eight main allegations of varying strength.”

Application for the State Tribunal for the President of the NBP. Details >>>

Main photo source: Paweł Supernak/PAP



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