Central Bank posts created to accommodate government's needs - PN

The PN rebuffed claims made by finance minister Edward Scicluna that the European Central Bank (ECB) had imposed a number of new posts at the Central Bank of Malta (CBM).

Instead, the PN held that the posts were created to accommodate the government's needs.

The Opposition said that this is confirmed in a ECB publication on 30 April 2013. In a statement signed by PN deputy leader Mario de Marco, former finance minister Tonio Fenech and MP Kristy Debono, the Opposition pointed out that   contrary to Scicluna's statement the Ministry of Finance was never asked to introduce the new position of Deputy Governor and a further director at the Central Bank of Malta.

Quoting the opinion issued in the journal on 30 April 2013, the PN said that ECB had welcomed the arrangement under which the CBM is the national authority responsible for the conduct of macro-prudential policies, acting in cooperation with other authorities whose actions have material impact on financial stability, in particular, the Malta Financial Services Authority (MFSA).

The journal had noted that "The ECB understands that the relevant arrangements in this respect are implemented through a Memorandum of Understanding."

"This Memorandum of Understanding has been introduced by the Ministry of Finance in a new piece of legislation submitted to Parliament to introduce new CBM posts on its own initiative ," the PN said.

The Opposition added that the new posts were not created out of necessity, but were created by the government.

The PN said that once again the government was trying to "mislead public opinion" by claiming that the ECB approved the appointment of a new Deputy Governor .

"The reality is that the European Central Bank simply did not object  to this appointment . It must also be noted that following these appointments the Board of the Central Bank of Malta is now larger than the German Central Bank board."

The Nationalist Party pointed out that it was committed to give its full support in developing the country's financial sector and insisted that should be done by safeguarding the Central Bank's independence.

Moreover, the PN called on the government to fulfil its promise to nominate the most qualified people in the new positions it had created.  

"In the best interest of the independence of the CBM , the Nationalist Party believes that the Government should seek consensus in its appointments."