A draft Spanish law could undermine the independence of the country’s central bank and weaken one of Spain’s key financial reforms, the European Central Bank (ECB) said in an official opinion.

Under the Treaty of the Functioning of the European Union, the ECB has the duty to give official rulings on any legislation affecting member states’ central banks. The draft law would create a government commission to monitor and control how Spanish banks were complying with an out-of-court settlement