Why this is boiling now
The rift between Donald Tusk and Adam Glapinski dates to 2023, when the National Bank of Poland cut rates steeply weeks before an election even as inflation was still in double digits. Tusk accused the governor of politicizing the bank, vowed to remove him if elected, then paused after winning - but is pushing again with the next vote scheduled for late 2027 and the nationalist opposition polling well.
Momentum built after Glapinski teamed up with Euroskeptic President Karol Nawrocki to float selling central bank gold to fund defense instead of using low-interest EU loans, Tusk's preferred route. After a two-year probe, an October vote by a parliamentary committee endorsed all eight accusations advanced by ruling-coalition lawmakers, including that the 2023 cut breached neutrality, that pandemic bond buying indirectly financed the deficit, and that the bank intervened in the zloty without proper authorization. Glapinski, whose second and final term runs to 2028, refused to take part, denies wrongdoing, and says the campaign could damage Poland's international standing.
In November, lawmakers may choose to send him before the State Tribunal, an infrequently convened court for senior officials. Glapinski argues lawmakers lack the authority to do so. Poland's Constitutional Tribunal also raised the threshold for sending the governor to trial to 60% of lower-house seats from a simple majority, a bar Tusk's coalition alone cannot meet, and it is unclear whether the government will accept that ruling.
The legal maze and a paralyzed board
If the case proceeds, ruling-party lawmakers say Glapinski would be suspended from his role as the 10-member Monetary Policy Council's chair and public figurehead and as head of the management board that runs day-to-day operations. That clashes with a 2024 Constitutional Tribunal decision stating the governor cannot be suspended under current parliamentary rules. MPC member and lawyer Przemyslaw Litwiniuk contends that neither Polish nor EU law provides any procedure to suspend the governor, saying no such mechanism exists.
As a rule, an attempt to suspend or oust the governor could prompt review by the European Central Bank should it judge the National Bank of Poland's independence to be at risk, a concern relevant to the ECB General Council where EU central bank chiefs are members. Asked about the dispute in 2023, ECB President Christine Lagarde said Glapinski could take any suspension attempt to the EU's top court, signaling reluctance to take sides.
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Another pressure point is the management board. A broader standoff between Tusk and opposition-aligned Nawrocki has stalled appointments that require the president to nominate candidates at the governor's request and the prime minister to approve them. Four nominees await Tusk's sign-off, and with Adam Lipinski's term ending Nov. 4, the panel excluding the governor could slip below the legal minimum of six. That raises doubts about core tasks like potential currency support.
Polish law offers no guidance on what to do if the management board drops below a quorum. "However, I have no doubt that such decisions can later be challenged for political reasons," he said. If vacancies endure or turn into bargaining chips, the ECB could issue an assessment "within the scope of its authority regarding the independence and functioning of national central banks," according to Patrycja Zawadzka, a law professor involved in drafting the National Bank of Poland Act.
What investors are already pricing
The banking tug-of-war is stirring concern about the NBP's autonomy and its ability to respond under stress. Poland and Slovenia are the only EU economies the IMF sees growing above 3% this year, yet Poland is carrying a fiscal deficit of around 7% of GDP and rising borrowing costs after its first rating downgrade in a decade. Since August, the extra yield over German Bunds on Poland's benchmark bonds has jumped by nearly a third to about 300 basis points.
The zloty tells a similar story. In October, it fell to a three-year low against the euro and, over the year, has trailed both the Czech koruna and the Hungarian forint. For a $1 trillion economy reliant on energy imports and bordering Russia's war in Ukraine, any hit to the central bank's capacity to stabilize markets raises the risk from external shocks.
The bottom line for your portfolio
Policy uncertainty is the risk premium here. A November vote on the State Tribunal, legal fights over any attempted suspension, and a board drifting below its legal minimum all point to slower crisis responses. That is showing up in wider spreads, a softer currency, and a watchful ECB.
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