Governors of Central Banks around Europe are appointed by national authorities and/or the country’s own government, and not the European Central Bank, sources told The Malta Independent.
In the past weeks, Malta’s Central Bank governor and former Finance Minister Edward Scicluna has faced overwhelming calls for his resignation over his alleged involvement in the three hospitals’ deal. Scicluna is being charged in court with fraud and misappropriation in connection with the inquiry into the hospitals’ deal.
Scicluna had been silent up until Wednesday, where he told the media as he walked into the Court that there is a great difference between a governor, and a minister. He said that the resignation of a minister is in the prerogative of the Prime Minister. With regard to the resignation of a governor of a Central Bank in a European system, Scicluna said that “this is governed by a European treaty and by the statute of the European Central Bank.”
Scicluna said that “there are strict conditions so that there is no interference from the government, Opposition or NGO regarding a resignation.”
Sources who spoke to The Malta Independent on condition of anonymity however said that as a matter of fact, governors of central banks are appointed by their respective governments in their country, not by the ECB. This implies that it is up to the government, not the ECB, as to whether Scicluna should keep his place.
The Central Bank of Malta’s website also says that the governor and the deputy governors are appointed by the President of Malta, acting on the advice of the Cabinet of Ministers, meaning the government.
Other board members in the Board of Directors are appointed by the Prime Minister himself, and these members, along with the Governor, are appointed for a term of five years, after which they are eligible for re-appointment.
Scicluna assumed the position of Governor of the Central Bank of Malta on 1 January, 2021 for a five-year term, meaning his present tenure would effectively end on 1 January, 2026.
So far, Prime Minister Robert Abela has backed Scicluna, saying that he will not request his resignation despite criminal charges, describing him as someone “who loyally served the State.”
On the other hand, Opposition Leader Bernard Grech has insisted that Abela has no other choice but to sack Scicluna as CBM Governor, “if he wants to preserve the country’s integrity,” given that Scicluna “did not have the decency to do what is expected of him.”