Italian Premier Silvio Berlusconi’s Cabinet yesterday approved a reform of Italy’s central bank that includes a seven-year fixed term for its governor - attempting to restore the bank’s credibility after weeks of attacks over its handling of two recent bank takeover cases.
Economy Minister Domenico Siniscalco drew up the reform after accusations that central bank governor Antonio Fazio discriminated against two foreign banks bidding for control of two Italian banks earlier this year.
Critics have called on Fazio to resign. The Cabinet made no such recommendation, but three ministers were quoted by Italian news reports as urging Fazio to step down.
The Bank of Italy’s governor is the only central bank governor in the eurozone appointed for life. The reform also includes measures to dilute the governor’s decision-making power.
Additional measures oblige the bank to report to parliament every six months and provide for the transfer of the bank from public to private ownership.