Trichet says new law should not apply to Fazio

European Central Bank president Jean-Claude Trichet said a new law introducing a limited term of office for the head of the Bank of Italy should not be applied to current governor Antonio Fazio.

Trichet told the European Parliament economic and monetary affairs committee that the ECB governing council had previously taken the view that new laws on the mandates of central bank governors should not be applied retrospectively.

'To preserve the independence of the national central banks...we said