EU urges Poland to ensure bank independence

Polish plans to create a new financial regulator could threaten the independence of the central bank and break EU rules.

Warsaw this week approved draft proposals for a new commission that would regulate banks and financial markets, merging three independent watchdogs into one government-controlled unit.

Polish observers fear that the move would give the government too much influence over the central bank, with three of the seven members of the new commission directly appointed by the Polish government.

Polish Prime Minister Kazimierz Marcinkiewicz denied that this was the case. The new regulator would, he said, ensure “more efficient and more effective supervision” of the banking, insurance, pension and capital markets.

EU law dictates that central banks must remain independent of political influence, and Poland risks breaking the terms of its agreement to join the single currency.

Brussels has not commented on the Polish plans – which are still at the draft stage – but a spokesman for the commission reminded the Warsaw authorities that “the independence of supervisory authorities is crucial”.

The EU executive will continue to monitor the situation, he added.

Marcinkiewicz’ minority government is on another collision course with Brussels over its plans to investigate the decisions of the Polish central bank’s role in approving foreign takeovers over the last decade.

The government recently blocked the takeover of the BPH bank by Italy’s UniCredit, despite the fact that the deal had been approved by the central bank and the EU executive.

Internal market commissioner Charlie McCreevy is considering taking legal action against the Poles for breaking EU rules on the free movement of capital.

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