ECB's Fabio Panetta Picked to Lead Bank of Italy

By Ed Frankl

Italy's government said it picked European Central Bank executive board member Fabio Panetta as the new governor of the Bank of Italy, taking over from Ignazio Visco at the end of his current term on Nov. 1.

The nomination, from the rightwing government led by Giorgia Meloni, will now require the signature of President Sergio Mattarella.

The move will leave a gap in the ECB's executive board--its chief implementation body--with Panetta moving to the bank's governing council made up of the central bank heads of eurozone members.

"With Panetta gone, the only outspoken monetary-policy dove will soon leave the ECB's executive board," according to ING head of macro, Carsten Brzeski.

Panetta worked at Italy's central bank for several decades and was senior deputy governor under Visco before moving to the Frankfurt role in 2020

Visco succeeded Mario Draghi as Bank of Italy governor in 2011, steering the country through the euro debt crisis and the Covid-19 pandemic, when Italian bond yields temporarily spiked.

Draghi took over as ECB president after leaving the Bank of Italy and later returned to Rome as Italy's prime minister in 2021-22.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

06-28-23 0510ET