Brussels, 11/05/2011 (Agence Europe) - The Chancellor of Germany, Angela Merkel, said in an interview on Thursday with German newspaper Die Zeit that she has decided to back the application of the governor of the Bank of Italy, Mario Draghi, to take over from Jean-Claude Trichet at the helm of the European Central Bank (ECB). The news had been leaked to the media and was confirmed on Wednesday 11 May by Merkel's spokesperson. Angela Merkel said: “Germany could support [Draghi] as a candidate for the office of president of the ECB. I know Mario Draghi. He is a very interesting and experienced character. He stands very close to our views on stability culture and solid economic policy.”
Draghi's appointment is likely to be announced at the June European Council, but he already looks set for the job. His experience at US investment bank Goldman Sachs and his nationality seem to play in his favour and his firm anti-inflation views fit with Germany's ideas. He is currently head of the Financial Stability Forum (FSF) and Italy may announce his official application for the post at the Eurogroup meeting on Monday but it remains to be seen what Germany will be demanding in return for supporting Italy's candidate. Germany would like to see a German head the FSF and/or the EU Council of Ministers Economic and Finance Council. Germany's official backing comes two weeks after France's (announced by French President Nicolas Sarkozy at a Franco-Italian summit, see EUROPE 10365). Sarkozy commented that France wanted to keep a French national on the ECB Governing Council when Jean-Claude Trichet (of France) retires at the end of October. The appointment of Lorenzo Bini Smaghi as the new head of Banca d'Italia would make this possible. (M.B./transl.fl)