Merkel backs Italian banker to become next ECB president

GERMAN chancellor Angela Merkel backed Mario Draghi yesterday to become the next European Central Bank president, clearing the way for the Italian to succeed Jean-Claude Trichet from November.

Ms Merkel’s spokesman said she stood ready to support Mr Draghi after a source told Reuters that Italy was expected to propose him formally at a meeting of eurozone finance ministers on Monday.

“If this candidacy is put forward, the government will support it,” said German government spokesman Christoph Steegmans.

No other candidate has been formally proposed for the job.

Winning Ms Merkel’s support was all that stood between Mr Draghi and the coveted ECB post after French President Nicolas Sarkozy threw his weight behind the Bank of Italy chief late last month.

The 63-year-old shot into pole position to succeed Mr Trichet after the previous frontrunner, Germany’s Axel Weber, said in February he was quitting as Bundesbank chief and would not seek the job.

Mr Trichet’s eight-year term expires at the end of October.

The Frenchman will leave his successor a legacy of monetary stability but also the challenge of tailoring ECB policy to address growing divergence in the 17-country eurozone, with core economies recovering but others mired in a debt crisis.

The fact that Mr Draghi comes from a country with a history of high inflation and fiscal ill discipline has been seen as problematic by some in Germany, and his background at investment bank Goldman Sachs could also have counted against him.

But his experience and impressive credentials have made it hard to look past him.

In comments to Die Zeit newspaper, Ms Merkel said Mr Draghi shared Berlin’s economic values. “I know Mario Draghi. He is a very interesting and experienced individual.”

“Germany could support a candidacy from him for the office of the ECB president,” she added. “He stands very close to our agenda of stability and solid economics.”

Eurozone leaders are expected to decide finally on who succeeds Mr Trichet in June.

In addition to gaining Mr Sarkozy’s support, Mr Draghi has also won backing from the chairman of eurozone finance ministers and also Spain.