Euro chiefs delay ECB decision

By Anna McLauchlin - 8th March 2004

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Eurozone finance ministers have agreed to hold fire on choosing a candidate for the upcoming vacancy on the board of the European Central Bank.

Following the informal Eurogroup meeting on Monday night, Irish finance minister and president-in-chief Charlie McCreevy said a decision would be made in a few weeks time on the three confirmed candidates for the post.

These are Bank of Spain Executive Board Member José Manuel Gonzalez-Paramo; Peter Praet, a director of the National Bank of Belgium and Ireland's Michael Tutty, vice president at the European Investment Bank.

Portugal, which earlier announced it might put forward a candidate, did not do so.

Ministers will now reflect on the three nominations, McCreevy said, before taking a decision at the European Council on March 25 and 26.

"Some ministers felt they should have more time to consider the qualities and qualifications of each (candidate)", he explained.

By tradition the next candidate for the ECB post, to be vacated by Eugenio Domingo Solans on May 31, should be named by a country that has not yet placed a member on the board, namely Portugal, Belgium, Ireland or Luxembourg.

But Germany, France and Italy are set to back Spain's nomination, establishing the trend that larger member states should always be present on the ECB board.

Under EU law, nominations for ECB postings are taken by unanimous vote, but McCreevy noted that a "gentlemen's agreement to arrive at unanimity" could pave the way for majority approval.

Delaying a decision could also give ministers more time to consider the recently vacant managing director post at the International Monetary Fund, although McCreevy insisted ministers did not touch on the matter on Monday.

This role is usually taken up by a European and an Irish official said on Monday it is "improbable" that the ECB and IMF nominations would be of the same nationality.

Spanish finance minister Rodrigo Rato has been touted for the IMF post, along with UK chancellor Gordon Brown.