Latvia to nominate head of central bank for ECB vice-president

RIGA - Latvia will nominate Bank of Latvia Governor Martins Kazaks for the post of Vice-President of the European Central Bank (ECB), Prime Minister Evika Silina (New Unity) announced on social media.

The prime minister notes that a number of senior management positions at the ECB will soon become vacant. "Kazaks is an experienced and internationally respected professional who could be the first Latvian and also Eastern European representative in the ECB's top management," the prime minister says.

The current Vice-President of the ECB is Luis de Guindos, whose term of office ends on May 31, 2026.

The Ministry of Finance has prepared a draft decree on the nomination of Kazaks for the post of Vice-President of the ECB. The ministry notes that Kazaks is an internationally recognized macroeconomist with extensive professional experience in monetary policy, financial stability, and the banking sector, and his nomination would significantly strengthen Latvia's representation in the European Union (EU) institutions.

Finance Minister Arvils Aseradens (New Unity) believes that the nomination of Kazaks to ECB management strengthens Latvia's ability to contribute to the development and financial stability of the euro area as a whole. Kazaks would be the first representative of Latvia and Eastern Europe in ECB top management, and this would be an important step toward strengthening Latvia's representation and competence in EU institutions, Aseradens said.

The Ministry of Finance notes that Kazaks meets all the requirements for the position laid out in the Treaty on the Functioning of the EU, including an impeccable reputation and excellent professional qualifications in monetary and banking matters.

The post of ECB Vice-President will become vacant in May 2026 and the ECB will have to elect four Executive Board members, including the President, by the end of 2027. Under the Treaty on the Functioning of the EU, the candidate must be an EU national of impeccable reputation and have a very high level of professional experience in monetary or banking policy.

The Treaty on the Functioning of the EU explains that the Vice-President of the ECB is one of the central positions in the European economic and financial system. The Vice-President implements euro area monetary policy, participates in decision-making on banking supervision, represents the ECB in international forums and is responsible for macroprudential policy and financial stability.

The government's conceptual support would allow the Ministry of Finance to continue its work on preparing Latvia's official nomination. At the same time, the Ministry of Finance and the Ministry of Foreign Affairs will work in a coordinated manner to ensure diplomatic and political support for Kazaks' candidacy at the EU level.

As reported, the Saeima approved Kazaks' appointment for a second term as Bank of Latvia Governor in February this year.

Kazaks holds a bachelor's degree in economics from the University of Latvia, a diploma in economics from the University of Cambridge and a master's degree in economics and a PhD in economics from the University of London.

From 2005, Kazaks was Chief Economist in Latvia and Chief Macroeconomic Analyst in the Baltics at Swedbank, and from 2010 to August 2018, Deputy Chief Economist, Chief Economist, Swedbank Latvia and Head of Macroeconomic Research, Baltic Countries, Swedbank Group.

Kazaks has been a member of the Supervisory Council of the Bank of Latvia since August 2018, and in December 2019, the Saeima elected him Governor of the Bank of Latvia by 76 votes.