The Federal Government has asked the National Bank of Belgum (BNB) to provisionally retain Pierre Wunsch as Governor.
Prime Minister Alexander De Croo has dispatched an official letter to the BNB to initiate this move, De Tijd reported on Sunday. This development has been confirmed by anonymous government sources.
Wunsch's term finishes on 1 January. Concerns have risen over a potential leadership vacancy at the BNB, as the "Vivaldi" coalition government parties have yet to reach a consensus on an extension.
A new tenure for Wunsch should have been a straightforward affair, but the last ministerial meeting prior to the Christmas break saw Belgium's political leaders wrangling over several key issues, thus stalling the BNB Governor's term extension.
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The lack of a decision yields several legal uncertainties. For instance, the National Bank Governor sits on the European Central Bank's (ECB) Board of Directors in a personal capacity, and hence, cannot be replaced merely by another BNB representative.
Christine Lagarde, the ECB head, has agreed to a temporary arrangement as long as Pierre Wunsch secures a fresh term soon after the holiday season.
This interim solution involves the Prime Minister and Finance Minister sending an official letter to the BNB, asking it to exceptionally and briefly keep Wunsch in his role to ensure continuity.
