Tusk signs off on central bank board appointments, easing a standoff as a deadline nears

What changed and why

Donald Tusk approved new members for the National Bank of Poland's management team, breaking a months-long impasse that had imperiled daily functioning. Before a cabinet meeting, he said, "We were facing a deadlock, the management could have lacked the capability to work and that's why I decided to take this step."

He faced a Nov. 4 deadline to approve board candidates or risk the number of members dropping below the legal minimum for key functions, including crisis response. Whatever happens in parliament with the governor, Tusk added, "the central bank itself must, above all, be protected from unexpected shocks."

Politics still ahead

The move lowers the temperature but does not resolve the wider conflict. Glapinski, who heads the management board as well as the distinct Monetary Policy Council that determines interest rates, has denied any wrongdoing.

Government spokesman Adam Szlapka said the parliamentary vote on Glapinski and the board appointments are unrelated. Meanwhile, an escalating weekend clash between Tusk and opposition-backed President Karol Nawrocki followed a decision to suspend the constitutional court's chief justice and his deputy, prompting protests and pushing the country into a political crisis.

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Who is on the list

Last month, President Karol Nawrocki asked Tusk to approve four nominees to break a stalemate that began earlier this year. The slate includes Marta Kightley, a onetime deputy governor at the central bank, along with three sitting Monetary Policy Council members: Ludwik Kotecki, Marcin Zarzecki and Przemyslaw Litwiniuk. Tusk did not say how many of these candidates he approved.

By law, management board members serve six-year terms. They are nominated by the president at the governor's request and require the prime minister's approval.

Markets and the investor angle

Following Tusk's statement, the zloty recovered part of its decline versus the euro, yet it was still down on the day and hovered near a three-year low.

The bottom line: clearing the staffing jam reduces operational risk at the central bank, but the looming parliamentary vote on the governor keeps political risk in play. Expect markets to stay sensitive to headlines while the institutional fight runs its course.

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