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 French economy shrank by 0.3% in the second quarter, indicating negative growth across the euro zone's three biggest economies in the April to June period.

WAR in Iraq has already started denting the global economy, data and reports showed yesterday, stoking fears of even greater damage ahead as the chances of a protracted war seemed to be rising.

The European Central Bank's priority is to stabilise the eurozone inflation rate below 2%, council member Eugenio Domingo Solans said.