Left Menu
Development News Edition

Operation Paris: Italy's plan to stay on ECB executive board

Reuters | Rome | Updated: 11-06-2019 22:01 IST | Created: 11-06-2019 21:54 IST
Operation Paris: Italy's plan to stay on ECB executive board
Image Credit: Wikimedia

Italy is ready to back a French candidate to lead the European Central Bank as part of its plan to ensure Rome retains a seat on the ECB executive board once Italian chief Mario Draghi steps down this year, a government source in Rome said.

Draghi ends his eight-year mandate in October and cannot be renewed in the job, potentially leaving Italy without board representation unless someone from France or Germany, the other big euro-zone powers already on the board, takes the top job. According to unwritten rules, Italy, France and Germany are de facto entitled to seats but are allocated only one each on the six-member executive board.

If a French or a German were to succeed Draghi, either country would have to relinquish its existing seat, opening up an automatic vacancy for Italy. Rome would prefer a French candidate - central bank chief Francois Villeroy de Galhau or current ECB board member Benoit Coeure - rather than Bundesbank chief Jens Weidmann to take the top job, the source said.

That is because of the German candidate's previous criticism of ECB bond purchases. Buying upstate bonds were part of Draghi's "whatever it takes" stimulus drive that helped heavily indebted Italy through the global financial crisis. "We will support a French candidate in order to get a seat for Italy," said the source, who declined to be named.

However, the candidate considered most likely to clinch the top job is former Finnish central bank chief Erkki Liikanen or the incumbent Bank of Finland boss, Olli Rehn. Given Finland is not currently represented on the executive board, that outcome could leave Italy out in the cold at least until end-2020 when the next vacancy comes up.

Any Italian-French deal over ECB seats would contrast with recently strained relations between the two countries. Italy's populist government has been an outspoken critic of centrist French President Emmanuel Macron. Paris recalled its Italy ambassador in February after the leader of one of Rome's ruling parties met "yellow vest" anti-government protest leaders in France.

However, the government source said Rome was prepared to bury its anti-Macron rhetoric to clinch French support for continued Italian representation on the board, which plays a central role in setting interest rate policy for the 19-nation eurozone. A recent Reuters survey of economists found that France's Coeure was considered the best-qualified candidate.


TRENDING

OPINION / BLOG / INTERVIEW

5G will be the key driving force for COVID-19 recovery: Here's how?

... ...

Canada’s COVID-19 pitfalls highlight need for integrated health information system

In the globalized world of today where outbreaks can spread far and wide within a matter of days, a global-level integrated health information system is ideal but Canadas provincial barriers show that the country lags much behind in deployi...

Pandemic must be impetus, not obstacle, for clean water access

To make matters worse, there are suspicions that the inadequacy of wastewater treatment methods in California, the rest of the USA, and indeed around the world may help to propagate the disease even more widely. ...

3D printing and the future of manufacturing post COVID-19

The on-demand, customizable, and localized manufacturing of product components facilitated by 3D printing has the potential to redefine manufacturing but there are certain technical, mechanical, and legal limitations that, unless ...

Videos

Latest News

Linen Club from Aditya Birla Group unveils new brand identity and logo

MUMBAI, India, Aug. 13, 2020 PRNewswire -- Linen Club, the premium linen fabric brand from the Aditya Birla Group, announced the launch of its new brand identity and logo. The new brand identity and logo represents Linen Clubs passion, auth...

War's end meant years of pain for Japanese girl in China

The last day of the Pacific War was also supposed to be Fumie Satos last. After hearing Emperor Hirohitos August 15, 1945, radio broadcast declaring Japan would soon be enduring the unendurable in defeat, her father, an Imperial Army office...

Eunuchs attack woman, create ruckus in north-east Delhi

A group of eunuchs allegedly created ruckus in north-east Delhis Brahmapuri area and attacked a woman who has been admitted to a hospital after suffering injuries in the incident. The police stated that there was a quarrel between two famil...

2 hideouts of LeT terrorists destroyed in J-K's Pulwama

Two hideouts of proscribed outfit Lashkar-e-Toiba LeT were destroyed and a huge cache of explosive material and ammunition was recovered during a search operation by security forces in Awantipora in Pulwama district on Thursday, according t...

Give Feedback