The independence of the Banco de España’s senior management in relation to the political authorities and to influence from the sector supervised is reinforced, inter alia, by: i) a specific selection procedure for the posts of Governor, Deputy Governor and Council members, with the Governor’s appointment being made at the proposal of the Prime Minister, from among persons with recognised competence in monetary or banking matters and a prior appearance by the Minister for the Economy being required before the competent Parliamentary Committee to report on the candidate;4 ii) the terms of office of the Governor and the Deputy Governor are for six years (exceeding the electoral cycle) and are non-renewable; iii) the setting of specified causes for dismissal from the posts of Governor, Deputy Governor and elected Council members;5 iv) the incompatibilities rules to which the Governor, the Deputy Governor and the Council members are subject; v) the specific conflict of interest rules applicable during their terms of office that include restrictions on financial transactions and private investments; and vi) prohibition of pursuit of professional activity relating to credit institutions or to securities markets in the two years following stand-down from the post (see Annex 3). As regards the staffing of the institution, the Banco de España, by legal imperative, recruits its employees observing the principles of equality, merit, ability and openness. These principles prevail throughout their career within the institution. Job security for Banco de España employees rests on the protection afforded by labour market legislation, strengthened by various in-house policies (e.g.
Moreover, the Governor shall be heard by the Minister for the Economy about the appointment of six members of the Governing Council. Propose to the Governing Council the Council members that shall form part of the Executive Commission. Propose to the Executive Commission the appointment and dismissal of the Directors General, for ratification by the Governing Council. The Governor shall have the powers delegated by the Governing Council or the Executive Commission. 2 Powers of the Deputy Governor     Manage, at the highest level, the common internal services of the Banco de España. Stand in for the Governor when the post is vacant or in the event of the latter’s absence or illness. The Deputy Governor shall have the powers delegated by the Governor, the Governing Council or the Executive Commission. 3 Powers of the Governing Council   Approve the general guidelines of action of the Banco de España so that it may fulfil the functions entrusted to it.   Debate monetary policy matters and supervise the Banco de España’s contribution to implementation of the monetary policy of the European System of Central Banks by the Executive Commission, all in accordance with the ECB’s guidelines and instructions and observing the independence and professional secrecy obligation of the Governor as a member of the ECB’s governing bodies.