Spain proposes economy minister Calvino to head Eurogroup

Calvino, also a deputy prime minister in Spain's left-wing coalition government, had been tipped as a front-runner, though Luxembourg's socialist finance minister Pierre Gramegna and centre-right Irish counterpart Pascal Donohoe are other potential candidates. Proposals for the new Eurogroup chair, who will play a major role in designing policies for economic recovery after the coronavirus crisis, must be submitted by the end of Thursday ahead of a July 9 vote.

Spain has proposed its Economy Minister Nadia Calvino to head the influential Eurogroup of 19 euro zone finance ministers, the government said on Thursday, becoming the first country to formally announce a candidate. Calvino, also a deputy prime minister in Spain's left-wing coalition government, had been tipped as a front-runner, though Luxembourg's socialist finance minister Pierre Gramegna and centre-right Irish counterpart Pascal Donohoe are other potential candidates.

Proposals for the new Eurogroup chair, who will play a major role in designing policies for economic recovery after the coronavirus crisis, must be submitted by the end of Thursday ahead of a July 9 vote. "It would be an honour for the Spanish Government, and for me as its president, if Nadia Calvino were to take on the Presidency," Prime Minister Pedro Sanchez tweeted. "For the first time, Spain and a woman would lead this institution."

Confirming her candidacy via Twitter, Calvino, a 51-year old economist and technocrat who has worked as director general for the European Commission's community budget, said she would seek a prosperous euro area to the benefit of all Europeans. MODERATE VIEWS

The Eurogroup post has been vacant since Portuguese Finance Minister Mario Centeno announced earlier in June that he would not seek a second 2 1/2 year term. Filling the position fits into a broader round of negotiations for major European Union posts that aims to strike a balance between different political leanings and regions.

Madrid has long wanted to chair the group, but also has designs on leadership of the World Trade Organisation for Foreign Minister Arancha Gonzalez Laya. The Eurogroup's leader plays a crucial role in hammering out compromises on regional policies and chairs the board of the euro zone bailout fund.

An independent with moderate social democratic views, Calvino has been in Sanchez's government since mid-June 2018. Her mentor is former economic deputy prime minister Pedro Solbes. Calvino's presence in cabinet has served as a counterweight in Sanchez's coalition with the hard-left Unidas Podemos, which has placed a communist as labour minister.

If she becomes head of the Eurogroup, Calvino would have to stay in cabinet for at least two years. The government has previously proposed her for other big international posts, including heading the International Monetary Fund.