Parliament cannot cut salary for Lithuanian central banker, ECB says

The European Central Bank says Lithuania’s parliament cannot cut the salary of the country’s central bank governor, an initiative proposed by a liberal MP.

Remuneration for board members of the Bank of Lithuania cannot be changed in the middle of their terms and all planned changes must first be coordinated with the ECB, has reported.

Giving a pay cut to Vitas Vasiliauskas, the chief of Lithuania’s central bank, was proposed by liberal MP Kęstutis Glaveckas. He and some other MPs from the ruling bloc argue that his pay should not be bigger than that of the country’s president or prime minister.

According to the Bank of Lithuania, Vasiliauskas’ monthly salary is 11,863 euros, or 7,161 euros after tax.

However, the parliamentary Committee on Budget and Finance received a letter from Yves Mersch, a board member of the European Central Bank, on Wednesday, stating that the parliament cannot cut pay for incumbent members of the central bank’s board.

The ECB also stressed that, under the existing laws, any legislation related to the Bank of Lithuania, including changes to the salary of its executives, must be coordinated with the ECB in advance.


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