Italy's League announce bill to overhaul central bank's governance

Turkiye Is Bankasi AS

26/11/2024 14:15

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      League revives bill put forward in mid-2019
    

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      Move came amid turmoil over Unicredit bid for Banco BPM
    

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      League leader questioned role of central bank
    

  
    By Angelo Amante and Giuseppe Fonte
       ROME, Nov 26 (Reuters) - Italy's co-ruling League party
said on Tuesday it was drawing up a bill to boost politicians'
powers to name senior central bank policymakers, reforming the
current system by which appointments are largely made mainly
internally.
    "Parliamentary involvement is imperative to avoid a
dangerous self-referentiality of supervisors," Alberto Bagnai,
League lawmaker and deputy chairman of the finance committee in
the lower house of parliament, said in a statement.
    A leading eurosceptic, Bagnai added the bill was identical
to a proposal put forward in mid-2019, when the League was in a
coalition with the anti-establishment 5-Star Movement, but it
was never approved.
    The Bank of Italy's governor is currently appointed through
a complicated procedure that involves the government, but also
requires consultation with the central bank's main internal
body, known as its "superior council".
    The other board members are proposed by the superior council
and then rubber-stamped by the government.
    The 2019 draft bill said three board members, including the
governor and his deputy, should be appointed by the prime
minister after consultation with the cabinet.
    Of the other two, one should be named by the lower house
Chamber of Deputies and the other by the upper house Senate, by
secret votes requiring an absolute majority of those present in
each house.
    The bill also said any modifications to the Bank of Italy's
statute must in future be decided by parliament through a law.
    As things stand, changes to the statute can only be proposed
by the assembly of the Bank of Italy's shareholders.
    The move came amid political turmoil over UniCredit's
 CRDI.MI  unsolicited bid for rival Banco BPM  BAMI.MI .
    League leader and Deputy Prime Minister Matteo Salvini
voiced doubts about the deal, while also questioning the role of
Bank of Italy's top officials.
    UniCredit's move risks scuppering the government's plans to
form a third strong banking player alongside Intesa Sanpaolo
 ISP.MI  and UniCredit through a merger of Banco BPM with
state-owned Tuscan lender Monte dei Paschi di Siena (MPS)
 BMPS.MI .
    "The question for me and for many savers is: Is Bank of
Italy there? What does it do? Does it supervise? Since they are
among the highest paid in Italy, as an Italian citizen I would
like to know if it's all under control," Salvini said.
    "I wouldn't want someone to want to stop the Banco BPM-MPS
deal to do favour to others," he added, without elaborating.

 (Editing by)
 ((giuseppe.fonte@thomsonreuters.com; +390680307711;))