ECB reacts to possible changes to the Law on Croatian National Bank.
Croatian authorities have received a letter from the European Central Bank (ECB) warning them that any changes to the laws relating to the Croatian National Bank (HNB) must be coordinated and agreed with the ECB. The Office of the Speaker Željko Reiner confirmed that the letter had been received, but no details have been announced, reports Novi List on May 8, 2016.
In addition, sources say that the letter shows that it was addressed also to Pierre Moscovici, Commissioner for Economic and Financial Affairs of the European Commission.
It is quite clear that the European Central Bank has sent the letter due to the announced changes to the Law on Croatian National Bank, proposed by a group of 45 MPs from the ruling parties, but also from the opposition. The proposal would allow the State Audit Office to audit annual financial statements and operations of the HNB, while Parliament could debate and vote on annual reports of the central bank. In addition, governor and vice-governors would be limited to a maximum of two consecutive terms.
The law has been proposed by an interesting combination of 45 MPs from nine parties and seven minority and independent MPs. The law is supported by 10 MPs from HDZ, 13 MPs from MOST, 2 MPs each from HDSSB, HSS, HSLS and HSU, Miodrag Demo from the Milan Bandić’s party, and Radimir Čačić from Reformists’ Party The changes are also supported by independent MPs Stipe Petrina and Gordana Rusak, and representatives of national minorities Mile Horvat, Šandor Juhas, Ermina Lekaj Prljaskaj, Vladimir Bilek and Mirko Rašković.
Those opposed to the changes say they are not surprised by the letter from Frankfurt and note that such changes should first have been negotiated behind the scenes. On the other hand, the proponents of the changes say they do not know about the letter. They point out that it will be easy to explain to the European Central Bank the proposed changes because in most countries of the European Union state auditors are allowed to audit operations and reports of central banks, while Croatian laws currently do not provide for this.
