MNI: Renzi Democrats Aim To Oust BOI Visco; Parl Adopts Motion

By Silvia Marchetti

     ROME (MNI) - Italy's Democratic Party, led by former premier Matteo Renzi,

have formally requested in parliament that Bank of Italy governor Ignazio Visco

not be re-confirmed for a second mandate.

     Their anti-Visco motion was approved Tuesday evening in the Lower House

with 213 yes votes out of a total 315, underlining wide support to change the

Bank's governor. 

     In the document, the Democrats ask the "government to adopt useful

initiatives to reinforce the efficiency of the bank's supervision on the banking

system to safeguard savers and to boost trust among citizens by identifying, to

such end, the most qualified figure able to ensure a renewed confidence".

     The Democrats in parliament do not directly appoint Visco's successor,

which is a prerogative of the government. 

     But the vote will certainly stand as a marker and could be a turning point

towards a new, different appointment, according to party sources, who argue how

Visco's credibility has weakened. 

     Visco's mandate expires on October 31. Renzi has more than once criticized

Visco for a lack of control in preventing several banking crises that have

rocked Italy.

     The central bank has responded that every decision taken and every move

made to safeguard Italy's banking system was always taken in accordance with the

government. The bank is ready to submit all necessary documents to the

parliamentary commission set-up to investigate bank defaults, and Visco is

willing to be questioned on the issue, said sources close to the bank. 

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: M$E$$$,M$I$$$,M$X$$$,MC$$$$,MI$$$$,M$$EC$,MGX$$$]