Sejm rejects amendments to limit NBP independence by just nine votes

The Sejm was only nine votes short Friday from passing a controversial law limiting the monetary policy authority of the National Bank of Poland (NBP). The current law on the central bank states that its primary objective is maintaining a stable price level, while its secondary objective is supporting the government's economic policy. However, opposition deputies who claim NBP's tight monetary policy stifles economic growth wanted to give those two objectives equal importance. This would mean that in setting interest rates the Monetary Policy Council (RPP) would have to consult with the government. The Sejm originally intended to amend the law on NBP to adjust it to EU standards, but then some deputies also wanted to introduce amendments limiting the salaries of the NBP board and RPP. Finally, a revision was introduced to limit NBP's independence. However, before all the amendments were voted on, Prime Minister Jerzy Buzek and Finance Minister Jaroslaw Bauc made desperate pleas to reject the changes, as such interference in central bank independence would compromise Poland internationally. (Rzeczpospolita, June 9-10, p. A1) T.J.