where DirectorsGeneral, the governing bodies at the proposal of Directors-General or persons responsible for their subsidiary bodies, by delegation or substitution, have made or informed decisions in connection with those banks) Absolute prohibition: banks supervised by the Banco de España or in their economic group, and banks or associations representing the collective interests of the former Private banks, or banks in the same group, affected by decisions in which they have participated  President  3 years  Members  2 years  Any other financial institution, and any entity engaged in lobbying in relation to the ECB, or consultancy and/or advocacy for the ECB, or for financial institutions Counterparties to the Eurosystem in monetary policy or foreign exchange operations Payment or settlement system operators, central counterparties and providers of payment instruments subject to ECB oversight  Significant or less significant credit institutions  Any other financial institution and any entity engaged in lobbying in relation to the ECB, or consultancy and/or advocacy for the ECB, or for financial institutions Counterparties to the Eurosystem in monetary policy or foreign exchange operations Payment or settlement system operators, central counterparties and providers of payment instruments subject to ECB oversight Lobbying its members or staff in connection with matters for which they were responsible within their portfolio Lobbying its members or staff in connection with matters for which they were responsible within their portfolio 10  ANNEX 4 – Governor mandates in European countries: terms of office and renewability Term of office, assuming one renewal,  NCB  Governor’s term of office  Renewable  BE  5 years  YES  10 years  DE  8 years  YES  16 years  EE  7 years  YES  14 years  IE  7 years  YES  14 years  GR  6 years  YES  12 years  ES  6 years  Non-renewable  6 years  FR  6 years  YES (once)  12 years  IT  6 years  YES (once)  12 years  CY  5 years  YES  10 years  LT  5 years  YES (unlimited)  10 years  LV  6 years  YES (unlimited)  12 years  LU  6 years  YES  12 years  MT  5 years  YES  10 years  NL  7 years  YES  14 years  AT  6 years  YES  12 years  PT  5 years  YES (once)  10 years  SI  6 years  YES  12 years  SK  6 years  YES (once)  12 years  FI  7 years  YES  14 years  ECB  8 years  Non-renewable  8 years  UK  8 years  Non-renewable  8 years  if allowed  NOTE: The power to renew terms of office has not been used in SI, MT or CY, while it has been used at least once in DE, AT, BE, EE, SK, LV, LT, LU, FI, FR, GR, NL, IT and PT (and in IE prior to the existence of the Eurosystem).

The Deputy Governor shall be appointed by the Government following a proposal by the Governor and must meet the same conditions as the Governor. The six elected Council members shall be appointed by the Government following a proposal by the Minister for Economy and Finance, after consultation with the Governor. They must be Spanish and have recognised competence in economy or law. Finally, the two elected members of the Executive Commission shall be appointed by the Governing Council of the Banco de España, following a proposal by the Governor, from among the Council's elected members. 5  Only prosecution for deliberate crimes, permanent disability, incompatibility arising during the term of office or serious non-fulfilment of obligations can be causes for dismissal. 5  3 Formal independence: a necessary but insufficient condition Although independence must be based on a sound legal framework, formal “independence” is a necessary but insufficient condition for independent agencies. Independence must be effective and, therefore, it must be credible. In other words, an “independent” agency must be recognised by society as one that operates independently within its area of competence. This requires there to be complete trust that its actions are governed exclusively by true and fair compliance with the mandate entrusted to it, because this is the best way in which to serve the general interest. In consequence, connecting channels with society must be maintained and reinforced. This should result in a pro-active exercise in institutional transparency and accountability in the fulfilment of our mandate, as I shall detail later.