ECB executive board: Eurogroup gives support to Fabio Panetta’s candidacy

Today, the Eurogroup gave its support to the candidacy of Fabio Panetta to become the new member of the European Central Bank’s executive board.

Fabio Panetta currently serves as senior deputy governor of the Bank of Italy.

The recommendation to the European Council, which is composed of the heads of state and government, should be formally adopted by the Council on 10 October. The European Council will then consult the European Parliament and the Governing Council of the ECB and is expected to adopt its final decision by the end of the year.

The new member of the executive board will replace Benoît Cœuré, whose mandate ends on 31 December 2019, and who served a non-renewable 8-year term.

Background

Article 283(2) of the Treaty on the Functioning of the European Union specifies that appointments to the ECB executive board are made “by the European Council, acting by a qualified majority, from among persons of recognised standing and professional experience in monetary or banking matters, on a recommendation from the Council, after it has consulted the European Parliament and the Governing Council of the European Central Bank.”

The ECB executive board is responsible for the implementation of euro area monetary policy, as laid down by the ECB governing council. It is composed of the President, the Vice President and four other members, all appointed for a non-renewable 8-year term. The governing council is composed of six executive board members and the governors of national central banks of the euro area member states.