ECB takes Latvia to court, wants central bank chief’s powers back
03 Jun 2018

The European Central Bank accused Latvia in Europe’s highest court on Wednesday of illegally removing its central bank governor earlier this year and asked for at least some of his powers to be reinstated.

In a case without precedent for the ECB, Latvian central bank chief Ilmars Rimsevics was detained in February on accusations of corruption and has been barred by Latvian authorities from working as governor, preventing him from taking part in ECB meetings, including interest rate decisions.

Rimsevics has denied any wrongdoing.

In a first hearing at the European Court of Justice, the ECB argued that the absence of Rimsevics risked damaging the reputation of the bank, could infringe on its independence and threatened to hold up decision making as a member country is now without a vote.

It also argued that Rimsevics was still formally a member of the Governing Council since he has not been convicted of any crime, so only he could appoint an alternate, an impossible task since he is barred from work.

The ECB asked the court to reinstate the powers of the governor with relation to ECB duties, including over monetary policy decisions and banking supervision, with the possible exception of supervisory cases related to Latvia.

Accused of soliciting a bribe of ‘no less’ than 100,000 euros, Rimsevics has also been prevented of leaving Latvia and had his security clearance revoked, even though no formal charges have yet been filed and investigation is still in its preliminary stages.

– Reporting by Michele Sinner, Reuters, 30 May 2018

– Link to Reuters.

Advance your CPD minutes for this content, by signing up and using the CPD Wallet


You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.