Poles get bank-deal rap

Date: 16/03/06

The confrontation between Poland's nationalist government and the EU over Italian bank Unicredito's taking control of Poland's second and third largest banks sharpened this week as top EU officials warned that it could jeopardise Poland's eventual membership of the euro.

On Wednesday (15 March), the Polish parliament voted to condemn Leszek Balcerowicz, the central bank president, a man widely seen to have been the architect of the post-communist economic reforms. The parliament had voted the previous day to set up a commission to investigate the actions of the central bank and banking regulators over the past 17 years.

Poland's central bank has refused to block foreign takeovers. Jean-Claude Trichet, the president of the European Central Bank, this week warned "with great, great gravity" that central bank independence was of extreme importance.

European Monetary Affairs Commissioner Joaqu’n Almunia said: "The central banks of the 25 states should be independent."

Article reports on the dispute between the Polish Government and the European Union over Italian bank Unicredito's taking control of Poland's second and third largest banks. The Polish Parliament on 15 March 2006 voted to condemn Leszek Balcerowicz, President of the Central Bank for refusing to block foreign takeovers.