Possible successors to ECB chief Trichet
European Central Bank President Jean-Claude Trichet's eight year non-renewable term expires at the end of October 2011. European Union leaders must select a new president "from among persons of recognized standing and professional experience in monetary and banking matters".
January 21, 2011 / 09:35 IST
European Central Bank President Jean-Claude Trichet's eight year non-renewable term expires at the end of October 2011.
European Union leaders must select a new president "from among persons of recognized standing and professional experience in monetary and banking matters". They are expected to do so in the first half of this year. Analysts say the most likely choices are among those already on the ECB's Governing Council, but an outsider is possible.Here are some of the names in public discussion for the job.Frontrunners: Axel weber, Germany, 53 -- An academic economist and head of the Bundesbank, the central bank of Europe's largest economy, Weber is regarded as the frontrunner. An outspoken "hawk", keen on a hard line against inflation, he is the youngest contender and would be the first German to head the Frankfurt-based ECB since the euro's launch in 1999.However, he upset several EU governments by publicly criticising the ECB's decision last May to buy euro-zone government bonds to help stabilise the bond market and stop a rout of peripheral countries' sovereign debt. Some EU diplomats say such open dissent may cost him the job.Mario draghi, Italy, 63 - A former treasury official with the IMF and with private sector experience, the Italian central bank head is chairman of the Financial Stability Board, in charge of coordinating global financial regulation since the 2008-9 financial crisis. He would be the first Italian in the position.Draghi rarely speaks on interest rate policy but is regarded as a centrist on the ECB's governing council. His chances may be reduced by the fact that another southern European considered a monetary dove, Vitor Constancio of Portugal, was appointed ECB vice-president last year. Draghi may also be tainted in some eyes by having worked in 2002-5 for investment bank Goldman Sachs, criticised for its role in the financial crisis.Other governing council members:Yves Mersch, Luxembourg, 61 - The longest-serving member of the ECB's governing council, Mersch has headed tiny Luxembourg's central bank since its creation in 1998. Seen as an inflation hawk close to German thinking, he might be a compromise candidate if Weber fails. Luxembourg already has one big EU job, though, with Prime Minister Jean-Claude Juncker chairing the Eurogroup of finance ministers of the euro zone, which could work against Merch's chances.Guy Quaden, Belgium, 65 - The Belgian National Bank chief is a respected moderate on the ECB governing council. Similarly to Mersch, Quaden's chances may be hurt by the fact that Belgium already has one top European Union job with Hermann Van Rompuy as president of the European Council. Quaden may also be seen as too old to start an eight-year stint at 66.Ewald Nowotny, Austria, 66 - The Austrian central bank head has taken a prominent role in defending ECB policy against criticism in the German-speaking world. But in addition to his age, his socialist background may be a handicap with conservative German Chancellor Angela Merkel, while some regard him as too talkative.Erkki Liikanen, Finland, 60 - The Finnish central bank chief is a former European Commissioner and a monetary policy moderate. His social democratic affiliation and the fact that Finland already has a key position with European Economic and Monetary Affairs Commissioner Olli Rehn may stand against him.Outsides:Klaus Regling, Germany, 60 - Head of the European Financial Stability Facility, the former senior European Commission official could emerge as an alternative German candidate if Weber were to fall by the wayside.Regling holds orthodox German views on monetary policy and fiscal discipline. He has no central banking experience but served at the IMF and in the German Finance Ministry before rising to be director-general for Economic and Financial Affairs in the EU executive in Brussels.Philippe Maystadt, Belgium, 62 - President of the European Investment Bank since 2000, he was a respected Belgian finance minister for a decade until 1998 and participated in the creation of the euro. He has built up the EU's soft-lending arm and is regarded as having done a good job during the crisis, helping avert a potential banking meltdown in eastern Europe.But he has no central banking experience and like Quaden may be handicapped by fellow Belgian Van Rompuy's prominent EU job. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
