Banking trade unions call for resignation of Governor of the Bank of Italy

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On 27 September 2005, Italian banking trade unions sent a letter to the members of the Bank of Italy’s Superior Council, urging them to annul the mandate of its Governor, Antonio Fazio, in order to safeguard the international reputation of the Bank.

According to some critics, the recent conduct of Antonio Fazio, the Governor of Italy’s central bank, the Bank of Italy (Banca d’Italia), in the 'Banca Antonveneta affair' has jeopardised the role of the Bank as neutral arbiter of the processes of mergers and takeover bids between Italian and other European banks. Mr Fazio has, it is alleged in some quarters, abandoned the traditional governor’s impartiality to favour Italian banks in takeover bids, notably the Banca Popolare Italiana which was engaged in a takeover battle for Banca Antonveneta with ABN Amro. It is alleged that this has compromised the prestige of Italy’s central bank both at national and European level.

After the accusations of bias in this takeover decision, Italy’s Prime Minister, Silvio Berlusconi voiced his lack of confidence in Mr Fazio and declared that it would be inadequate for him to remain governor. The centre-left opposition also called for the resignation of Mr Fazio.

On 27 September 2005, the banking sector trade unions affiliated to the General Confederation of Italian Workers (Confederazione Generale Italiana del Lavoro, Cgil), the Italian Confederation of Workers’ Unions (Confederazione Italiana Sindacato Lavoratori, Cisl) and the Union of Italian Labour (Unione Italiana del Lavoro, Uil) - respectively Fiba, Fisac and Uilca- and Falcri and Dircredito sent a letter to the members of the Superior Council of the Bank of Italy to urge them to open a procedure to revoke the Governor’s life mandate. The Governor of the Bank of Italy can be removed only by the Bank’s 13-member Superior Council.

The trade unions, which represent more than 60% of banking and finance sector workers, wrote that 'the lack of authority of the Governor, in the national and international institutional venues, which objectively compromise the exercise of his role, would have required him to responsibly step down'. Since Mr Fazio seemed unwilling to resign the trade unions have decided to address a formal letter to the governing council of Banca d’Italia to urge its members to 'proceed in a responsible way by opening the procedure for revoking the mandate of the Governor.'

The trade union organisations argue that the international credibility and reputation as well as the financial reliability of the Bank of Italy, which has a long history of moral rigour and professional excellence, could be safeguarded if the Superior Council decides to remove the Governor. According to the trade unions, it would be an independent action consistent with the principles and the traditions of independence of Italy’s central bank.

The initiative of the trade unions is unprecedented but is not an isolated request. Falbi-Consalp, a trade union organisation located in via Nazionale, which represents 70% of Banca d’Italia employees is ready to call a strike to urge the governor’ resignation, which it claims will save the reputation, the credibility and the image of the bank at national and international level and heal the emerging divisions between the Bank of Italy’s direction and its staff.

Fonti: Il Sole 24 Ore, 28 settembre 2005; Il Secolo d’Italia, 28 settembre 2005; Il Messaggero, 28 settembre 2005; La Repubblica, 28 settembre 2005, comunicato stampa 27 settembre 2005.

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