(Bloomberg) — The Belgian government is seeking a short-term interim extension to central bank chief Pierre Wunsch’s term, but a political impasse has delayed a formal decision on his reappointment.
In a letter obtained by Bloomberg News, Prime Minister Alexander de Croo asked the National Bank of Belgium to explain how Bunsch could remain in office for an “unusually short period of time” under the “continuity principle.” We requested them to consider whether it is possible to do so.
Wanche’s five-year term expires on January 1, but the government has yet to extend it due to disagreements over other federal appointments.
The agency said it would soon conclude its deliberations on Wunsch’s reappointment and asked the agency “to make the necessary adjustments to this end, pending the decision of the federal government.”
Wansh, 56, has been working at the central bank since 2011 and has been its governor since 2019. The term of office at the central bank is renewable until the governor reaches official retirement age. The appointment comes into effect by a Royal Decree signed by the King of Belgium.
The Belgian newspaper Des Tigides, which first reported De Croo’s letter, said the prime minister had been in touch with European Central Bank President Christine Lagarde, who said she wanted Wunsch to receive her new role immediately. It was reported that the transitional measures were given the go-ahead on the condition that: Possible.
Prime Minister’s Office and an ECB spokesperson declined to comment. It is unclear who will represent Belgium on the ECB board.
A spokeswoman for the National Bank of Belgium said its highest internal committee, the Regency Council, would meet in the coming days to consider how best to protect the central bank’s continued operations.
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