Sarkozy backs Italian candidate for ECB post

FRENCH President Nicolas Sarkozy threw his weight behind Mario Draghi’s candidacy to head the European Central Bank yesterday, giving a major boost to the Bank of Italy chief’s hopes of succeeding Jean-Claude Trichet.

Mr Sarkozy’s public endorsement raised pressure on German Chancellor Angela Merkel to accept Mr Draghi as successor to Mr Trichet when the Frenchman’s eight-year term expires later this year.

“France will be very happy to support an Italian at the presidency of the European Central Bank,” Mr Sarkozy said at a joint news conference in Rome with Italian Prime Minister Silvio Berlusconi.

“We aren’t supporting him [Mr Draghi] because he’s Italian,” the French president added. “We’re supporting him because he’s an excellent candidate.”

A German government spokesman declined to comment and said the decision on Mr Trichet’s successor will be taken at the next EU summit in June, but most analysts doubt that Germany will oppose him.

“It’s almost a done deal,” said Unicredit analyst Marco Valli. “I think it’s just a matter of time before Merkel endorses him formally.”

Mr Trichet will step down at the end of October.

RBS analyst Nick Matthews said Mr Draghi was now significantly closer to the top ECB job. “This may spur the Germans into publicly endorsing Draghi or coming up with another candidate.”

Germany has not made its stance on Mr Trichet’s successor public, though Handelsblatt business daily last week quoted a senior German government official as saying Finance Minister Wolfgang Schaeuble supported Mr Draghi.

“There looks to be an overwhelming majority among ECB Governing Council members, politicians like him and markets are positive about him,” said Mr Valli. “I would be very surprised if he doesn’t get the job.”

Even French officials have privately acknowledged that it is up to Ms Merkel to choose a successor to Mr Trichet. Only if her choice encountered strong opposition from France and other eurozone countries, would it not go through.

Mr Draghi, 63, heads the Financial Stability Board in charge of global banking regulation and has private sector experience with investment bank Goldman Sachs as well as government experience as a former director of the Italian Treasury in the 1990s.

Mr Matthews noted that Mr Draghi has tended to adopt a relatively low public profile and that “needs to change if he becomes the porte-parole for the whole ECB governing council”.

A successor to Mr Trichet is expected to be picked by September at the latest and maybe as early as June.