(ANSA) - The cabinet met on Tuesday to approve new rules for the Bank of Italy and discuss a replacement for Antonio Fazio, who resigned in the wake of a widening bank takeover scandal.
Speaking after the cabinet agreed on the changes at the central bank, Premier Silvio Berlusconi told reporters that the government would consult with the centre-left opposition on Fazio's successor.
But he stressed that the new governor will be proposed by the government after consulting with the bank's 13-member Superior Council, which retains the 'formal' power of nomination.
If parliament approves the changes, Fazio's successor will no longer have an open-ended mandate but will be be appointed for a six-year, renewable term, Economy Minister Giulio Tremonti said.
In the future, Council members will also have a limited term, said Tremonti, without specifying how long this would be.
"The power of nomination for the directors (of the Bank of Italy) will continue to be held by the Superior Council," said the minister, one of Fazio's staunchest critics. The government will then propose the candidate to President Carlo Azeglio Ciampi, who has formal power of approval, Tremonti said.
Culture Minister Rocco Buttiglione said he believed the government should act quickly and choose a replacement before Christmas, in a bid to restore the image of the central bank, which has been tarnished by the scandal and Fazio's delayed
resignation.
Meanwhile, politicians and pundits continued to speculate on potential nominees for the post. Among the possible names that were being tossed up were those of former European Central Bank board member Tommaso Padoa-Schioppa, Treasury Director-General Vittorio Grilli and former Treasury Director-General Mario Draghi.
Bank of Italy Deputy Governor Vincenzo Desario, appointed by the bank's Council to take over Fazio's duties on a temporary basis, is another possible candidate, political analysts said.
Fazio, who is under judicial investigation for insider trading in Milan and for abuse of office in Rome, announced his resignation on Monday.
Milanese prosecutors have been investigating Fazio's role in the takeover of the AntonVeneta bank since September and his position worsened after his close friend and former CEO of Banca Popolare Italiana (BPI) Gianpiero Fiorani was arrested last week on suspicion of criminal conspiracy to embezzle.
Fiorani was questioned by prosecutors during the weekend over Fazio's July 11 approval of BPI's bid for Antonveneta. Two top Bank of Italy inspectors tasked with vetting BPI's bid had decided it could not be approved because of doubts over the bank's capital and the alleged inadequacy of some of the documentation provided.
Fazio overruled their objections after consulting with 'outside experts', who instead gave a positive appraisal. Published transcripts of wiretaps ordered by magistrates seemed to show that Fazio and his wife worked behind the scenes to help BPI and Fiorani against Dutch rival ABN Amro, which eventually prevailed.
The governor, who had an open-ended mandate, had until now fiercely resisted all pressure to resign, insisting that he had done nothing wrong and had not broken any laws. The widely-expected announcement came on the eve of an emergency cabinet meeting to discuss ways of forcing him to step down, in view of news last week that he was being probed by Milan magistrates for insider trading.
A statement released by the central bank said Fazio had resigned "in the greater interest of the country and the Bank of Italy."
