Opinion of the European Central Bank of 11 July 2012 on the Central Bank of Cyprus Laws of 2002 to 2007 (CON/2012/51)
Date: 2012-07-11
Institutions: European Central Bank
Subjects: Cyprus, appointment of staff, central bank, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 11 July 2012  

on the Central Bank of Cyprus Laws of 2002 to 2007 

(CON/2012/51) 

Introduction and legal basis 

On 27 June 2012 the European Central Bank (ECB) received a request from the President of the Cypriot 

House of Representatives for an opinion on a proposal for a law amending the Central Bank of Cyprus 

Laws 2002-2007 (hereinafter the ‘proposal for a law’). 

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 

Functioning of the European Union 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  proposal  for  a  law  relates  to  the  Central  Bank  of  Cyprus  (CBC).  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 proposal for a law 

The  proposal  for  a  law  amends  Article  13  of  the  Central  Bank  of  Cyprus  Laws  of  2002  to  20072 

(hereinafter  the ‘basic law’)  on  the  appointment  of  the  Governor  and the  members  of  the  Board  of  the 

CBC.  It  provides  that  the  Ministerial  Council  must  consult  the  Budget  and  Economic  Affairs 

Parliamentary  Committee  (hereinafter  the  ‘Committee’)  prior  to  the  appointment,  removal  or  early 

termination of the term of office of any Board Member of the CBC. 

2. 

Personal independence 

The ECB previously considered the nomination procedure for the Board members of the CBC under the 

basic law to be compatible with the Treaty and the Statute of the European System of Central Banks and 

of  the  European  Central  Bank  (hereinafter  the  ‘Statute  of  the  ESCB’)  and  not  to  interfere  with  the 
personal  independence  requirements  under  Article  14.2  of  the  Statute  of  the  ESCB3.  The  ECB  has  no 

objections to the proposed involvement of the Committee in the appointment process of the CBC Board 

Members, as it would not impair the personal independence guarantees in the Statute of the ESCB and the 

basic law, nor the mandate of the current CBC Board members. 

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2   
3  

OJ L 189, 3.7.1998, p. 42. 
Law 138(I) of 2002. 
ECB Convergence Report 2007, p. 74, paragraph 5.1.2, available on the ECB’s website at www.ecb.europa.eu. 

 
 
 
 
 
                                                 
ECB-PUBLIC 

3. 

Smooth functioning of the decision-making bodies 

The  proposed  involvement  of  the  Committee  may  mean  that  a  longer  time  period  is  needed  for  the 

nomination procedure. In this regard, the ECB notes the need for the smooth and unimpeded functioning 

of the decision-making bodies of the CBC under the new nomination procedure. 

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

Done at Frankfurt am Main, 11 July 2012. 

[signed] 

The Vice-President of the ECB 

Vítor CONSTÂNCIO 

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