Opinion of the European Central Bank of 7 March 2007 at the request of the German Ministry of Finance on a draft Eighth Law amending the Law on the Deutsche Bundesbank (CON/2007/6)
Date: 2007-03-07
Institutions: European Central Bank
Subjects: Germany, board of directors, central bank, institutional activity, national law

EN 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 7 March 2007 

at the request of the German Ministry of Finance  

on a draft Eighth Law amending the Law on the Deutsche Bundesbank 

(CON/2007/6) 

Introduction and legal basis 

On 5 February 2007 the European Central Bank (ECB) received a request from the German Ministry of 

Finance  for  an  opinion  on  a  draft  Eighth  Law  amending  the  Law  on  the  Deutsche  Bundesbank 

(hereinafter the ‘draft law’). 

The  ECB’s  competence  to  deliver  an  opinion  is  based  on  Article  105(4)  of  the  Treaty  establishing  the 

European Community and the third indent of Article 2(1) of Council Decision 98/415/EC of 29 June 1998 

on  the  consultation  of  the  European  Central  Bank  by  national  authorities  regarding  draft  legislative 
provisions1,  as  the  draft  law  relates  to  a  national  central  bank.  In  accordance  with  the  first  sentence  of 

Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted 

this opinion. 

1.   Purpose of the draft  

The draft law reduces the number of Executive Board members of the Deutsche Bundesbank (hereinafter 

the  ‘Executive  Board’)  from  eight  to  six  members  and  is  aimed  at  making  the  Bundesbank’s  decision-

making body more efficient. According to the Law on the Deutsche Bundesbank currently in force, the 

Executive Board is composed of eight members, namely the President, the Vice-President and six other 

members,  whereby  the  President,  Vice-President  and  two  other  members  are  nominated  by  the  Federal 

Government and four other members are nominated by the Bundesrat (the Upper House of Parliament). 

By means of the draft law, the Executive Board will be reduced to six members, namely the President, the 

Vice-President  and  four  other  members,  whereby  the  President,  Vice  President  and  one  other  member 

will  be  nominated  by  the  Federal  Government  and  three  other  members  will  be  nominated  by  the 

Bundesrat. Furthermore, the draft law amends the provision concerning the nomination of the Executive 

Board members under §7(3) by inserting a new sentence whereby the Bundesrat may propose a nominee 

for  Vice-President  to  the  Federal  Government.  The  draft  law  also  provides  for  an  amendment  of  the 

transitional provision under §45 by introducing a transitional regime effective until 30 April 2009, during 

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OJ L 189, 3.7.1998, p. 42.  

 
 
 
 
                                                 
which the Executive Board may consist of seven members (the President, Vice-President and five other 

members). 

2. 

The ECB’s observations  

2.1  The  ECB  welcomes  the  proposed  amendments.  Establishing  a  more  efficient  decision-making 

structure  within  the  Deutsche  Bundesbank  was  also  the  express  intention  of  the  Seventh  Law 
amending  the  Deutsche  Bundesbank  of  20022,  and  the  current  draft  law  represents  a  further 

measure to achieve this aim. 

2.2  As regards the transitional regime effective until 30 April 2009 under §45 of the draft law, the ECB 
notes,  as  in  earlier  opinions3,  that  it  should  be  compatible  with  Article  14.2  of  the  Statute  of  the 

European System of Central Banks and the European Central Bank. 

2.3 

In  general,  the  principle  of  personal  independence,  as  laid  down  in  Article  14.2  of  the  Statute 

requires that the same rules for the security of tenure of office of Governor apply to other members 

of NCB decision making-bodies involved in the performance of ESCB-related tasks. This applies 

in  particular  where  a  governor  is  first  among  equals  between  colleagues  with  equivalent  voting 

rights. Thus, any NCB reorganisation measure affecting the tenure of office of the members of its 

decision-making  bodies  involved  in  the  performance  of  ESCB-related  tasks  should  foresee  that 

they  continue  to  perform  their  duties  until  the  end  of  their  appointed  term,  in  accordance  with 
Article 14.2 of the Statute4.  

2 
3  

4  

See ECB Opinion CON/2001/17 of 2 August 2001 on a draft Seventh Law amending the Deutsche Bundesbank Act. 
See ECB Opinions CON/2006/44 of 25 August 2006 at the request of the Banca d’Italia on the amended Statute of the 
Banca d’Italia, CON/2004/16 of 11 May 2004 at the request of the Italian Ministry of Economic Affairs and Finance on a 
draft law on the protection of savings, CON/2006/32 of 22 June 2006 at the request of the French Senate on draft law on 
the Banque de France and CON/2004/35 of 4 November 2004 at the request of the Hungarian Ministry of Finance on a 
draft law amending the Law on Magyar Nemzeti Bank. 
See the above mentioned opinions. 

2 

 
                                                 
2.4.  The  ECB  notes  that  the  end  of  the  transitional  regime  coincides  with  the  expiry  of  the  terms  of 

office of two current Executive Board members. This will allow the reduction of Executive Board 

members to six without termination of their term of office before its expiry. Since all members of 

the Executive Board will therefore be able to complete their term of office, the draft law does not 

affect  the  tenure  of  office  of  the  Executive  Board  members,  i.e.  the  principle  of  personal 

independence. In view of the above, the ECB has no comments on §45 of the draft law. 

This opinion will be published on the ECB’s website.  

Done at Frankfurt am Main, 7 March 2007. 

[signed] 

The President of the ECB 

Jean-Claude TRICHET 

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