Government starts hunt for new Central Bank governor as Lane's ECB elevation is confirmed

Central Bank governor Philip Lane has been confirmed as the European Central Bank's next chief economist.

He will take up the role on June 1, replacing Peter Praet who has held the position since 2011.

As a result, the Government has formally started the search for Mr Lane's replacement as head of the Central Bank.

Mr Lane will serve an eight-year non-renewable term as ECB chief economist. He has also been appointed to the ECB's executive board by the council of EU leaders.

Up until now, Ireland has been the only eurozone country never to have had a banker on the ECB's executive board.

Finance Minister Paschal Donohoe welcomed the appointment, calling Mr Lane "an outstanding economist" who has made "an important contribution over the last four years as governor of the Central Bank".

"This is an important and prestigious position. I am confident that Philip will excel in his new role at the ECB, and I wish him every success," said Mr Donohoe.

Mr Lane's ECB appointment was recently approved by the European Parliament and European finance ministers.