Verdict of the European Central Bank: Seimas cannot reduce the salary of V. Vasiliauskas Business

The initiative presented by Seimas Liberal member Kęstutis Glaveckas to reduce the salary of the President of the Council of the Bank of Lithuania, Vito Vasiliauskas, has failed.

On Wednesday, the Seimas Budget and Finance Committee (BFK) received a response from Yves Mersch, a member of the Board of the European Central Bank (ECB), that Seimas cannot reduce the remuneration of current Bank Board members from Lithuania.

Mr Mersch recalled that the ECB had already provided its clarification on this subject in 2010.

“I would like to draw your attention to the fact that the ECB was consulted about the amendments to the Law of the Bank of Lithuania as early as 2010. Later, the ECB stated that any change in remuneration could not apply to members of the Bank Council of Lithuania (including the President of the Council) during the current period and could only affect future members, “emphasizes the response.

The ECB also emphasizes that the law provides for the coordination of any draft legal act related to the Bank of Lithuania, including changes in the remuneration of its executive. In addition, the ECB should seek prior policy advice.

In the comment sent by the Bank of Lithuania 15 minutes It is claimed that a different response from the ECB could not be expected, especially after hearing similar inquiries in Lithuania a decade ago.

“The procedure for determining the remuneration of the Chairman of the Board and the members of the Board of the Bank of Lithuania is defined in the Law of the Bank of Lithuania, which the Bank of Lithuania strictly observes and will comply with,” says the reply.

K. Glaveckas: and to scratch your nose, we have to ask permission

The idea of ​​reducing V. Vasiliauskas’ salary came to the liberals Kęstutis Glaveckas. Politician talking to 15 minutes it did not hide the expectation of a different response from the ECB.

“I think the Lithuanian Seimas and the government cannot take their hats off without permission. For example, we would like to increase the salary of the President of the Council of the Bank of Lithuania, which we could not do either. It is very strange for me,” K. Glaveckas was surprised.

The Seimas member felt that Lithuania should take stock of its remaining powers, as it cannot make any decisions now.

“We have been able to give ourselves as much power as possible.” Such a transfer of powers to our statehood, the Seimas, is always worth measuring. We want to scratch our noses: we have to ask permission and not give permission. In principle, there is nothing we can do, “lamented the politician, adding that solidarity was necessary, but it was also important to maintain dignity.

We want to scratch our noses: we have to ask permission and not give permission. In principle, there is nothing we can do, – regretted K. Glaveckas.

K. Glaveckas stated that the new Seimas would already decide on the salary of the President of the Council of the Bank of Lithuania for the new term, but did not rule out the possibility that if elected, he would try to continue the work.

“But, of course, perhaps the situation is different, perhaps the crisis will end and the economy will recover,” says the politician.

Trapped higher than the president’s salary

V. Vasiliauskas’ salary was the most stagnant for politicians who did not yield to the reduction of their salaries due to the fact that he exceeded the salaries of all Lithuanian leaders, both the President and the Prime Minister or the President of the Seimas.

According to data from the Bank of Lithuania, V. Vasiliauskas’ salary in 2020 In the first quarter, it amounted to almost 11,836 euros “on paper”, or 7,161 euros “on hand”.

“No one has such a salaried salary. The salaries of the members of the Board of the Bank of Lithuania are more than 10 thousand. EUR, when the salary of the President – 7.5 thousand. 9680 EUR (- 15 minutes note), the President of the Seimas – 4 thousand ” 15 minutes Glaveck said earlier.

True, 15 minutes Research conducted in 2006 revealed that V. Vasiliauskas’ salary is currently the highest, but not so exceptional. Managers of state-owned companies receive similar salaries, especially in the energy sector.

And, for example, both the CEO of Amber grid and that of Litgrid earned even more last year than V. Vasiliauskas.

For example, in 2019, the salary of Litgrid boss Daivis Virbickas, including the variable part paid for the 2018 results, amounted to LTL 12.5 thousand. EUR per month before taxes, or 7.5 thousand. euros in hand.

M.Majauskas: the proposal to reduce a salary is inconsistent

Commenting on the ECB’s response, Mykolas Majauskas, a member of the Seimas BFK and conservative, stated that the proposal to reduce the salary of the governor of the Bank of Lithuania was pointless.

“The EU Treaty says that, to protect all peasants from influence, such a decision can only be made with the message from the European Central Bank and has been reaffirmed.” 15 minutes highlighted a member of the Seimas.

He added that the decision to reduce the salary of the Governor of the Bank of Lithuania would not increase pensions, in addition, it would be inconsistent to cut a person’s salary.

“With such a proposal, I will only demonstrate my peasant muscle against an independent institution that guarantees the stability of the Lithuanian financial market. Secondly, it seems inconsistent when neither the Prime Minister, nor the ministers, nor the members of the Seimas intend to reduce their wages, but just looking at the others. Third, if the goal is really to reduce the wages of all public officials, then this is contrary to economic logic: in times of crisis, with the possibility of getting into debt, it is necessary to increase costs. This increases total demand and stimulates the economy, “said M. Majauskas.

Valstidaė Vida Ačienė agreed that it is not fair to change the salary of the Governor of the Bank of Lithuania mid-term.

Still a member of the Seimas 15 minutes He said that in the future the salaries of both the President of the Council of the Bank of Lithuania and the heads of state-owned companies in the field of energy should be revised, as they are much higher than those of the President and President of Seimas.

Expert experts on executive selection strongly disagree with such an opinion, emphasizing that the discussion that the Bank of Lithuania’s Governor’s salary is too high, as it exceeds the President and Prime Minister’s salary, has not been going on since so.

Karolis Blaževičius, head of the employee search company Indigroup 15 minutes He previously said that in the private sector, many middle managers receive higher wages than the president.

“In my opinion, the president’s salary is ridiculous: the salaries of other state institutions and companies should not be compared or lowered according to the salaries of the prime minister or president, which are low. Sometimes they are so small due to attitudes If it is argued that the president’s salary should be the highest of all salaries, it should be increased because it is too low. If we don’t think it is too small, then we shouldn’t compare it to other salaries, because these are different things, ” K.Blaževičius said.

Incidentally, V. Vasiliauskas’ salary depends on the salaries of commercial bank employees in the market. The Law of the Bank of Lithuania stipulates that the salary of the President of the Council of the Bank of Lithuania is equal to five times the average monthly salary of financial intermediaries published by Statistics of Lithuania.