The renewal of the Judicial Branch unlocks the replacements within the Bank of Spain and the regulators | Companies | EUROtoday

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The settlement reached final Tuesday between the PSOE and the PP to resume the General Council of the Judiciary (CGPJ), the governing physique of judges that had been in workplace since December 2018, has unblocked negotiations to decide on the replacements for senior officers of different establishments, which have been in an interim scenario for much less time however are not any much less necessary. These are the Bank of Spain, whose deputy governor, Margarita Delgado, workouts the very best accountability of the establishment on an interim foundation; the National Commission of Markets and Competition (CNMC), with half of the mandates of its administrators (5 out of ten) expired for the reason that summer season of final yr, and the Board of Spanish Radio and Television (RTVE), which additionally operates with a provisional president and 5 vacant director positions. To this listing of pending renewals we are able to add the National Securities Market Commission (CNMV), the place the presidency of Rodrigo Buenaventura and the vice-presidency, occupied by Montserrat Martínez, expire in December.

Sources near the Government recall that the precedence was to resume the governing physique of the judges and that, as soon as this milestone has been achieved, the door opens to begin negotiations for the remainder of the our bodies which are blocked or about to run out. To do that, they affirm that the Executive “is going to sit down with all the parliamentary groups, including the PP, in order to achieve the greatest possible consensus.” “We must take advantage of this window of opportunity that has opened with the CGPJ, a brief dynamic, and reach more agreements as long as it lasts,” these sources add, whereas highlighting that “it depends on what the rest of the parties want.” matches”.

For their part, PP sources assure that the renewals of the bodies that are pending are more “simple”, except for RTVE, which presents more complexities. The leader of the popular parties, Alberto Núñez Feijóo, stated that he would be willing to agree on the appointments of the aforementioned bodies “when it is time to renew.” And in the case of the Bank of Spain “it's time now,” he highlighted. Their expectation is that this negotiation will not be as complicated as that of the CGPJ – which has been stagnated for five and a half years by candidate vetoes, conflicting positions on the rule that regulates the appointment of its members and electoral calls -, if it is take into account the unwritten rule that the Executive appoints the governor and the opposition the number two of the body.

Indeed, the most urgent agreement is the appointment of Pablo Hernández de Cos's successor as head of the Bank of Spain, although the focus is also on the CNMC and the implementation of the new version of the old National Commission of Energy (CNE). The PP has no representatives left in the competition regulatory body, after the departure in August of last year of the last remaining counselor of those appointed at the time at the proposal of the conservatives, María Ortiz. The future regulatory commission of the electricity market must also have its own advisors.

In the case of the Bank of Spain, since June 11, the deputy governor of the institution, Margarita Delgado, has assumed the role of the highest authority of the banking supervisor, a role that she will be able to exercise until September, when her mandate expires. But the urgency to close an agreement on the new leader of the institution is not so much due to this fact, but rather due to the proximity of the next meetings of the European Central Bank (ECB), where the acting (or substitute) governors of national central banks do not have the right to vote on certain matters such as monetary policy.

The next two meetings of the supervisor based in Frankfurt (Germany) will be on July 18 and September 12; a key moment for monetary policy in the euro zone. Although at the beginning of June it decided to lower interest rates and give the euro zone a break after two years of fighting inflation, the ECB has not committed to maintaining the downward path, as it indicated in a statement on June 6 that the approach to be applied in the following meetings will depend on the data on the table at any given time. Hence the importance of appointing the new governor before July 18, so that Spain has a representative with voting rights at the next ECB meeting.

As for the CNMC, five of the positions on the board of directors have been vacant for almost a year. These are the positions of the directors María Ortiz (proposed by the PP) and Pilar Canedo (who represented the defunct Ciudadanos), who chose to leave the institution last summer after completing their respective six-year mandates; Xabier Ormaetxea and Bernardo Lorenzo, whose mandates expired on 23 September, although they continue temporarily in their positions; and a fifth corresponding to the last vice president, Ángel Torres, who died on 19 August.

In this scenario, the recovery of the former National Energy Commission (CNE) also comes into play, which could come into operation at the beginning of next year and will have its own council of seven members, who must also be appointed. In order to be implemented, the draft law must have the mandatory, non-binding reports of the Council of State and the CNMC. If the CNMC council is not complete, the body chaired by Cani Fernández will have to issue its opinion on the CNE, with a reduced plenary session and where the PP no longer has representatives.

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