Rutte blocked central bank president

30th December 2011, Comments 0 comments

Prime Minister Mark Rutte last spring personally blocked the appointment of the executive director endorsed by the Dutch Central Bank DNB to become its new head, newspaper NRC Handelsblad reports.

The prime minister considered Lex Hoogduin, one of the bank’s five executive directors, unfit as a political interlocutor and unable to introduce internal changes, the paper says. Mr Hoogduin’s candidacy had been endorsed by the bank’s governing and supervisory boards. After the prime minister’s veto, Klaas Knot, then a director at the finance minister and a former DNB executive director, emerged as a compromise candidate to replace DNB President Nout Wellink as of 1 July 2011.

It is highly unusual, the newspaper notes, for the prime minister to interfere so vigorously in the appointment of the DNB president. The prime minister’s refusal to accept the internal candidate backed by outgoing DNB President Wellink resulted, the paper argues, from an unprecedented conflict between the DNB and the government. Prime Minster Rutte and Finance Minister Jan Kees de Jager accused the bank of mismanaging the take-over of ABN Amro and the demise of Iceland’s Icesave bank and the DSB bank. cl

© Radio Netherlands Worldwide

© Radio Netherlands Worldwide

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