Brussels, 07/09/2005 (Agence Europe) - On Friday 2 September, Silvio Berlusconi's government unveiled plans to reform the Italian Central Bank, by replacing the current unlimited term of office and unlimited upper age limit of the governor by a non-renewable seven year term of office without age limit. It also wants greater collegiality and transparency in the Bank's decision-making. The shareholders of the Italian Central Bank will also change so that only countries and public bodies can hold shares in the bank. For the moment, Banca d'Italia will retain its powers to decide on mergers and acquisitions in the banking sector. The planned reforms take the form of an amendment to a draft law on savings soon to be debated at the Italian Senate before being passed by the Italian parliament.
Antonio Fazio, Governor of the Bank of Italy, has been challenged in the case of an attempted buy-out of two Italian banks, Banca Nazionale del Lavoro and Antonveneta by BBVA of Spain and ABN Amro of the Netherlands, respectively. The planned reformed unveiled by the government would not directly affect him because they would only apply from the moment when his successor is appointed. On Sunday 4 September, Domenico Siniscalco, Italian economics minister, publicly disowned the Governor of the Bank of Italy in the name of Italy's credibility in Europe and internationally (see EUROPE 9020). On Monday 5 September, Silvio Berlusconi said Siniscalso's statement had been justified but personal. Antonio Fazio will be a member of the Italian delegation attending the ECOFIN Council in Manchester on 9-10 September.
On Wednesday 7 September, the Italian media quoted Dutch finance minister Gerrit Zalm's comments that European economics and finance ministers would look at the issue. Charlie McCreevy, European Internal Market Commissioner, will be visiting Italy on 15-16 September.