Banque nationale de Belgique : Statement by the Council of Regency of the National Bank of Belgium

Mr Pierre Wunsch's term as the Bank's governor expired on 1 January 2024. The Council noted that the federal government did not renew his appointment in time. The Council of Regency deeply regrets this situation.

On 30 December 2023, the prime minister and the finance minister addressed a joint letter to the Council of Regency, asking the Council to examine how on an exceptional basis, for a short period of time, the current governor of the Bank could remain in office based on the principle of continuity of public services until such time as the federal government provides for the reappointment. The principle of continuity is a legal principle generally accepted in Belgian case law and legal doctrine.

The Council of Regency considered this question, having regard to the applicable statutory framework and based on both internal and external legal advice.

The governor's role is crucial for the proper functioning of the Bank as a national institution. Moreover, the governor is, by virtue of this office, a member of the ECB's Governing Council, the highest decision-making body of the Eurosystem, of which the Bank forms an integral part, as well as of the Board of Directors of the Bank for International Settlements.

Consequently, the Council of Regency, as the decision-making body with ultimate authority for the governance of the Bank, found that a provisional measure was necessary in order to safeguard the continuity and operational functioning of the Bank. Thus, the Council of Regency responded positively to the prime minister and finance minister's request and asked Mr Wunsch to continue to serve as governor on a temporary basis until the government takes a formal decision on his reappointment.

The Council of Regency stresses that the current situation is highly exceptional and that this temporary solution is suboptimal having regard to the principle of central bank independence enshrined in European law. Consequently, the Council calls on the federal government to fulfil its obligations under European and international law by taking a decision on the appointment of a governor as soon as possible. As such, the Council takes full note of the reference made in the letter from the prime minister and the finance minister to the fact that the federal government will soon conclude its deliberations on the reappointment of Mr Wunsch as governor of the Bank.