Opinion of the European Central Bank of 31 March 2026 on the composition of the Council of Latvijas Banka (CON/2026/12)
Date: 2026-03-31
Institutions: European Central Bank
Subjects: legal basis

ECB-PUBLIC 

EN 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 31 March 2026  

on the composition of the Council of Latvijas Banka 

(CON/2026/12) 

Introduction and legal basis 

On 11 March 2026, the European Central Bank (ECB) received a request from the Budget and Finance 

(Taxation) Committee of the Latvian Parliament for an opinion on a draft amendment (hereinafter the ‘draft 

amendment’) to the draft law amending the Law on Latvijas Banka1 (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 Article 2(1), third indent, of Council Decision 98/415/EC2, as the 

draft amendment relates to Latvijas Banka. In accordance with Article 17.5, first sentence, of the Rules of 

Procedure of the European Central Bank, the Governing Council has adopted this opinion. 

1. 

Purpose of the draft amendment 

1.1  The draft amendment proposes to reduce the number of members of the Council of Latvijas Banka 

(hereinafter the ‘Council’) from seven to six. 

1.2  As noted in the consultation request accompanying the draft amendment, Latvijas Banka is already 

successfully  operating  with  six  Council  members.  For  the  purposes  of  improving  efficiency  and 

optimisation of the public sector, the number of Council members of institutions and State-owned 

enterprises, including Latvijas Banka, should be reviewed and reduced where possible. A Council 

composed of six members does not affect decision-making given that, as established by the Law on 

Latvijas Banka3, in the event of a tie, the casting vote belongs to the chair of the meeting. 

1.3  As noted in the consultation request, the ECB was previously consulted on the draft law and adopted 

an Opinion thereon on 8 January 20264. As stated in the consultation request, the ECB should be 

reconsulted  –  according  to  the  Guide  to  consultation  of  the  European  Central  Bank  by  national 

authorities  regarding  draft  legislative  provisions  –  in  relation  to  those  amendments  where,  in 

exceptional cases, the draft legislation has undergone substantial changes of a non-technical nature 

as compared to the version on which the ECB was previously consulted5. The draft amendment is 

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2  

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4  
5  

Latvijas Bankas likums. Latvijas Vēstnesis, 193, 06.10.2021. 

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, ELI: http://data.europa.eu/eli/dec/1998/415/oj). 

See Article 15(8) of the Law on Latvijas Banka. 
See Opinion CON/2026/1. All ECB opinions are published on EUR-Lex.  
See Section 3.2.2 of the Guide to consultation of the European Central Bank by national authorities regarding draft 
legislative provisions (April 2025), available on the ECB’s website at www.ecb.europa.eu.  

 
 
 
 
 
 
ECB-PUBLIC 

indeed substantial in nature and, also considering it concerns Latvijas Banka, requires that the ECB 

be further consulted. 

2. 

General observations  

2.1  The ECB recalls that it has previously opined on the reduction of the number of Council members, 

from eight to six, in 20166.  

2.2  The  ECB  notes  that  the  Council  is  Latvijas  Banka’s  sole  decision-making  body7.  It  thus  takes 

decisions on behalf of Latvijas Banka which ensure the implementation of  Latvijas Banka’s tasks, 

including those related to the European System of Central Banks (ESCB) and the Single Supervisory 

Mechanism (SSM). 

2.3  The draft amendment does not raise personal independence concerns regarding the tenure of office 

of the Council members in view of the fact that the post to be removed by the draft law is currently 

vacant8.   

2.4  The ECB understands that Latvijas Banka’s stance is that that the current composition of the Council 

of  six  members,  including  the  Governor  and  the  two  Deputy  Governors,  will  be  adequate  and 

necessary  for  the  successful  performance  of  Latvijas  Banka's  functions.  Those  functions  include 

ESCB and SSM-related tasks, as well as the new task attributed to it by the draft law designating 

Latvijas Banka as the resolution authority for insurance and reinsurance undertakings.  

2.5  The ECB relies on Latvijas Banka’s assessment that the proposed reduction in the number of Council 

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

tasks of Latvijas Banka, including ESCB and SSM-related tasks.  

This opinion will be published on EUR-Lex.  

Done at Frankfurt am Main, 31 March 2026. 

[signed] 

The President of the ECB 

Christine LAGARDE 

6  
7  
8  

See paragraph 1.1 of Opinion CON/2016/47. 
See Article 11 of the Law on Latvijas Banka. 

See paragraph 2.1 of Opinion CON/2016/47. 

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