LDP, DPJ must immediately fill vacancy of Bank of Japan chieft
(From The Japan Times March 21 issue)

日銀総裁の座を空白のままにするな

The Upper House led by the Democratic Party of Japan has rejected the nomination of Mr. Koji Tanami, governor of the Japan Bank for International Cooperation, as the next chief of the Bank of Japan. BOJ head appointments require approval of both houses of the Diet.

The rejection March 19 came on the same day that the tenure of BOJ Gov. Mr. Toshihiko Fukui expired. Thus the top post at the central bank will remain vacant a while at a time when global financial markets have been roiled by the U.S. subprime mortgage crisis. This not only deals a political blow to Prime Minister Yasuo Fukuda but also damages the credibility of the BOJ.

On March 12, opposition forces in the Upper House voted down the government's initial choice of a successor to Mr. Fukui: BOJ Deputy Gov. Mr. Toshiro Muto. They said Mr. Muto's career background as a former vice finance minister could weaken the BOJ's appearance of independence from the government. Mr. Fukuda then nominated Mr. Tanami, also a former vice minister. Mr. Tanami was involved in tax reform and coordination of economic policies but is not well versed in international financial affairs. Given this career background, Mr. Fukuda could have foreseen that the DPJ-led Upper House would turn down Mr. Tanami's nomination, but the prime minister went ahead with his plan. His decision has left the impression that he would like to see the BOJ operate in close coordination with the Finance Ministry.

Clearly, Mr. Fukuda made a mistake, but this does not absolve the ruling and opposition camps of their responsibility to agree as soon as possible on the appointment of the next BOJ governor. Regrettably, neither camp appears to feel a sense of crisis over the vacancy at the top post of the central bank. They should stop blaming each other for delays and instead discuss in earnest what kind of person is best for the job.

The BOJ faces the difficult job of tackling the plunge in the U.S. dollar as well as the drop in stock prices. We can only hope that it manages to execute its duties properly even without a chief.

19日の参院本会議で日銀総裁候補の田波耕治国際協力銀行総裁が不同意となった。同日、福井俊彦日銀総裁の任期が切れた。

サブプライム問題で世界経済市場が揺れている中、大切なポストが空白になったことは福田康夫首相にとって打撃であり、日銀の信頼性も傷つくだろう。

首相は12日、後継者に武藤敏郎日銀副総裁を選び、不同意となると田波氏を推した。両者とも次官経験者で、武藤氏が不同意になればもう田波氏も不同意になることが予見されたはずだ。

首相の判断ミスは明らかだが、話し合いの停滞には与野党ともに責任があるのに、誰も日銀の最高ポストが空白であるという危機的状況を実感していないように見える。責任のなすりあいはやめ、真剣に後継者について話し合うべきだ。その間、現在の厳しい経済情勢下、日銀がトップなしでも責務を果たしていけるよう望むしかない。