Opinion of the European Central Bank of 28 September 2016 on amendments to the Law on Latvijas Banka reducing the number of members of the Council of Latvijas Banka (CON/2016/47)
Date: 2016-09-28
Institutions: European Central Bank
Subjects: Latvia, appointment of staff, central bank, decision-making, institutional activity, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 28 September 2016  

on amendments to the Law on Latvijas Banka reducing the number of members of the 

Council of Latvijas Banka 

(CON/2016/47) 

Introduction and legal basis 

On 8 September 2016 the European Central Bank (ECB) received a request from Latvijas Banka for an 

opinion on draft amendments to the Law on Latvijas Banka (hereinafter the ‘draft 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/EC1, as 

the draft law relates to Latvijas Banka. 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 law 

1.1  The sole purpose  of the  draft law  is to formally reduce the number of members of the Council of 

Latvijas Banka (hereinafter the ‘Council’) from eight to six. The Council is Latvijas Banka’s highest 

decision-making  body.  It  makes  decisions  on  behalf  of  Latvijas  Banka,  which  are  necessary  to 

ensure  the  implementation  of  the  tasks  of  Latvijas  Banka,  including  the  tasks  of  the  European 
System of Central Banks (ESCB) 2. The quorum for the meetings of the Council is more than half of 

its members, including the Governor and the Deputy Governor. Decisions of the Council are taken 

by a majority vote of the members present at the meeting. In the event of a tie, the chairperson of 
the meeting has the casting vote3. The meetings of the Council  are convened as required, but at 

least once a quarter. 

1.2  The Council currently  performs its tasks in the composition of six members because the terms of 

office of two members of the Council expired several months ago. Latvijas Banka is of the opinion 

that the current composition of the Council of six members in total, including the Governor and the 

Deputy  Governor,  will  be  adequate  for  successful  performance  of  Latvijas  Banka's  functions, 

including ESCB-related tasks.  

1  

2  
3  

Council  Decision  98/415/EC  of  29 June  1998  on  the  consultation  of  the  European  Central  Bank  by  national 
authorities regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 
See Article 26 of the Law on Latvijas Banka. 

See Article 24 of the Law on Latvijas Banka. 

 
 
 
 
 
 
                                                 
ECB-PUBLIC 

2. 

General observations   

2.1  The proposed amendments do not raise personal independence concerns regarding the tenure of 

office  of  the  Council  members  due  to  the  fact  that  the  two  posts  proposed  to  be  removed  by  the 

draft law are currently vacant.  

2.2  The  ECB  relies  on  Latvijas  Banka’s  assessment  that  the  reduction  of  the  number  of members  of 

the Council will have no impact on Latvijas Banka’s ability to successfully perform all functions and 

tasks of Latvijas Banka, including ESCB-related tasks. 

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

Done at Frankfurt am Main, 28 September 2016. 

[signed] 

The President of the ECB 

Mario DRAGHI 

2