Duisenberg’s ‘conflict of interest’

By Anna McLauchlin

Date: 29/07/04

FORMER European Central Bank (ECB) governor Wim Duisenberg has provoked concern in the European Parliament by taking up three influential board positions since he stepped down last November.

The bank's code of conduct demands that all governors respect a year's "cooling-off period" before taking up any positions that could cause a "conflict of interest".

But on 14 May, seven months after stepping down from the ECB, Duisenberg was appointed as a strategic advisor to German banknote printer Giesecke & Devrient's board of bank Rabobank and KLM/Air France on 24 June.

The French MEP, Pervenche Beres, newly appointed chairwoman for the Parliament's economic and monetary affairs committee, told European Voice that she was concerned by the appointments.

"We will have our first hearing with [current ECB governor Jean-Claude] Trichet on 21 September so obviously this subject will be on the table," she said. "I think it is always dangerous when codes of conduct are passed over this is not a good service we make to the public European position."

Jan Mulder, Dutch Liberal MEP, said Duisenberg's conduct "rings alarm bells".

Sources in the ECB governing council have expressed disquiet at Duisenberg's activities, which contrast with those of former ECB vice-president Christian Noyer, who waited a year before becoming governor of the Banque de France.

The ECB code of conduct states that departing members of the governing council "shall continue to avoid any conflict of interests that could arise from any new private or professional activities [and shall] inform the members of the Governing Council in writing whenever they intend to engage in such activities and shall seek their advice before committing themselves".

An ECB official said Duisenberg had only needed formal approval from the Governing Council in the case of Rabobank, which he applied for and was given.

The positions at Giesecke & Devrient and KLM/Air France, the official said, were Duisenberg's "personal decision" and no formal approval was required.

On the Giesecke & Devrient appointment, she said that as of 2002, each national central bank of the eurozone - and not the ECB - was responsible for the production of an allocated share in the total production of euro banknotes.

Giesecke & Devrient sought to play down the appointment, saying Duisenberg's term will not begin until 17 November, despite the fact that his name is already listed on the board on the company's website.

Former European Central Bank (ECB) governor Wim Duisenberg has provoked concern in the European Parliament by taking up three influential board positions since he stepped down November 2003.

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