European Central Bank threatens Poland with legal sanctions

According to Europejski Serwis Polskiej Agencji Prasowej the ECB is considering legal actions against Poland. Apparently, the farm-based Self-Defence party has prepared a central bank bill, which states that the Polish central bank is not only to maintain price stability, but will also be responsible for economic growth and unemployment reduction.

According to the EC Treaty the ECB’s primary objective is the maintenance of price stability. Supporting the general economic policies in the Community is its secondary objective.

Source: Europejski Serwis Polskiej Agencji Prasowej

European Central Bank criticises Self-Defence plans

07.02.2006 Warsaw (PAP) - The central bank bill prepared by the farm-based Self-Defence party is unconstitutional and contravenes EU directives. The European Central Bank threatened Poland with legal sanctions if it is passed, the Gazeta Wyborcza wrote.

"Our bill does not run contrary to the constitution and the EU law," Self-Defence's expert and author of the legislation Kazimierz Zdunowski said.

The Self-Defence seeks to make the central bank responsible not only for price stability but also for economic growth and unemployment reduction.

"The proposals are unconstitutional, run contrary to the European law and are economically harmful," central bank governor Leszek Balcerowicz said in a radio interview on Monday.