Vital ECB post up for grabs

FINANCE ministers are expected to name the new appointee for the vacant seat at the European Central Bank today when they will also discuss nominations for the International Monetary Fund position.

The nominees are Ireland’s European Investment Bank member Michael Tutty; Belgian Central Banker Peter Praet and Spain’s Jose Manuel Gonzalez-Paramoto.

At present Ireland’s nominee appears to have the least chance, partly because with Ireland holding the EU Presidency, Finance Minister Charlie McCreevy is not in a position to lobby for him as hard as he could otherwise.

The vacancy on the ECB Executive Board arises from the departure of Eugenio Domingo Solans who retires at the end of May.

The larger countries favour Spain’s nominee on the basis that the bigger economies should have a permanent representative on the ECB.

However, Mr Praet is considered to be a very strong candidate with a good reputation. Like Ireland, Luxembourg and Portugal, Belgium has never had a person sitting on the Board.

The decision was postponed by the Finance ministers at their meeting earlier this month partly because the Portuguese were considering entering the fray and also because they wanted to further discuss the matter of the IMF position.

Finance Minister in Spain’s outgoing government, Rodrigo Rato, has been heavily tipped for the IMF job, but it was considered that both posts could not go to Spanish candidates.

However, Mr Rato’s position is less sure now and the French have put forward Jean Lemierre, head of the European Bank for Reconstruction and Development.