Monday , October 25 2021

Text message and the future of the central bank «


Vienna. Heinz Christian Stratz Something unpleasant happened: he accidentally sent a text message about the reform of the banking supervision not only close to his associates, but also to the enemy state, that is, a member of the SPÖ. The joy was joyful, for the Vice President's short message could not have been more revealing.
Unnamed: Strache's first text shows that he is definitely against the transfer of banking supervision of the Osterreichische National Bank to the disposal of the financial market. However, this is exactly what Finance Minister Hartwig Luger planned ("Die Presse" reported on September 25).
In principle, FPÖ also knows that the time has come to amend the Banking Supervision. Finally, the Court of Reports report from 2017 clarified that the current structure is not only inefficient, but very expensive. But to improve the content of the status quo Strache should not go for the project. Instead, he is concerned that the planned restructuring of Löger can lead to savings of messages (and costs) in the National Bank: the plans of the Minister of Finance were "undermining the current reading ÖNB for 4 managers since 3. 11. To strive to weaken our power," Strache Know By SMS. However, the reading of the interview Löger, which was published ten days ago in Bloomberg, most likely angered the vice president. In this interview, the Minister of Finance emphasized that, in this case, he wanted to reduce the ÖNB board (eg, from 4 to 3) !!! So we are on the defensive, "he concludes." How should we argue with a fourth director if he has no more work? "Stratche asks in a certain round of approval, certainly not without a ready solution.If, despite his opposition, the level of the National Bank was reduced from four to three people, then" the second director should also be ours, "stressed Strache.

Loss of face not only for the FPÖ

How the whole thing will be going out, has to show itself in the coming days. Negotiations between the ÖVP and FPÖ are under way. But they are, at least since SMS Strache fixed black and white, probably not supported by factual considerations. They follow the basic political rule that it is not about finding good content solutions, but about enough points for party members.
While the opposition is eagerly pleased by the mistake of Strucker, the coalition partner is nothing but enthusiastic. Bringing the talks to the conclusion will not be easier now. Under these conditions, the chance of losing the face is much higher than in the past, even for OVP. No matter what the result is displayed, everyone will publish it by post under the heading "Postenschacher".
However, Luger was not thinking a few months ago that the fall supervision reform has not yet been resolved. The talks between his people and Secretary of State Hubert Fuchs (FPÖ) were already at home. After all, the ÖVP thanked the FPÖ that in the future it would be Governor with Robert Holtzman. He will follow Ewald Nautani, whose contract ends in 2019. But then suddenly some blues have found that now, when they finally have what to say in the central bank, they were deprived of important agendas like Banking Supervision. And now, Locker's plan to reduce the current four-member panel to three is inconsistent with the Party's self-esteem and its political-power strategy. If there are only three, Holtzman can be outvoted in decisions by two ÖVP members. FPÖ wants to prevent this.
Incidentally, none of the directors has yet been appointed. The deadline for submitting the application to the four places ends on 5 December.

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