HNB Publishes European Central Bank (ECB) Opinion on HNB Act Amendments

european-central-bank17 October 2016, VG Intelligence Weekly Issue 26

The ECB issued an opinion on the HNB Act Amendments. On 24 May 2016, the ECB received a Ministry of Finance’s request for an opinion on the HNB Act amendments.  Namely, in May 2016, 45 former Sabor MPs initiated an urgent procedure to amend the HNB Act, proposing to strengthen executive and legislative control Over the HNB, both through the Sabor and the State Audit Office, proposing to limit the national bank governor’s term to two mandates. According to the Treaty on the Functioning of the EU (TFEU), the ECB issues opinions on issues related to member states’ central banks. The ECB criticises the attempt of the increased political control over the HNB, stating that the principle of institutional independence is crucial. The Sabor competence to vote on and adopt decisions regarding HNB’s Annual Report would go beyond the HNB’s accountability towards the Sabor. It is interesting that part of the governing coalition (i.e. MOST) proposed to amend the HNB Act, as one of the 7 conditions during the government formation negotiations with the Croatian Democratic Union (HDZ)…

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