ECB backs Bank of Italy reform plan

The European Central Bank endorsed Italy's draft legislation to limit the term of the governor of the Bank of Italy from life to a single seven-year term on Thursday.

ECB President Jean-Claude Trichet did not comment, however, on calls for Bank of Italy head Antonio Fazio to resign.

Trichet said the ECB governing council discussed the pros and cons of a rate hike at its meeting Thursday.

He said the possibility of a rate cut was not discussed, although some council members may have considered t