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ECB’s Vujcic Proposed for New Term at Croatian Central Bank

Boris Vujcic Photographer: Andrey Rudakov/Bloomberg (Andrey Rudakov/Bloomberg)

(Bloomberg) -- Croatian central-bank Governor Boris Vujcic is on course to be reappointed for a third six-year term, ending uncertainty about his future at the bank following parliamentary elections in his homeland.

Vujcic, whose current stint ends on July 13, has received backing from Prime Minister Andrej Plenkovic and on Wednesday was formally proposed by the parliamentary committee for finances and budget, parliament spokeswoman Marina Buntic told Bloomberg. The posting must be approved by lawmakers, who are expected to take up the recommendation this week.

The 60-year-old Vujcic, who also sits on the European Central Bank’s interest-rate-setting Governing Council, helped Croatia to become the 20th member of the euro zone in 2023. It was unclear whether he’d retain his role with that task now complete.

Complicating matters further was a dip in support for Plenkovic’s party at elections, forcing him to team up with the right-wing and euro-skeptic Homeland Movement to form a government. 

Gaining a reputation as a hawk as the ECB battled an unprecedented bout of inflation, Vujcic is considered a possible candidate to join the the Frankfurt-based institution’s Executive Board when a slot becomes available. An eastern European official has never held a post there.

ECB President Christine Lagarde said last month that she hopes to work with Vujcic for “as long as it’s possible.”

“This is not a decision that belongs to me, but I can assure you that having worked with groups of people, groups of men in particular, when you have a good one, you want to hang on to it,” she said in Dubrovnik. “That’s my view. But it’s not for me to decide.”

Vujcic’s deputy, Sandra Svaljek, was also proposed for another term, while central-bank economist Maroje Lang was nominated to replace Vice Governor Roman Subic. Both their mandates expire later in July.

Deputy Prime Minister Marko Primorac said Tuesday that the ruling coalition supports Svaljek and Lang. He said the position of Vice Governor Slavko Tesija, whose mandate also ends in July, won’t immediately be filled.

--With assistance from Jana Randow.

(Updates with Lagarde starting in sixth paragraph.)

©2024 Bloomberg L.P.

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