Brussels, 05/03/2008 (Agence Europe) - The candidate appointed by the EU Finance Ministers (EUROPE 9615), German Thomas Mirow, has every chance of becoming the next President of the European Bank for Reconstruction and Development (EBRD) in July. It is up to the Board of Governors, which is made up of 63 of the bank's shareholders, to endorse this choice at its meeting in Kiev on 18 and 19 May, but the post, which is currently occupied by Frenchman Jean Lemierre, is traditionally reserved for a European. The European Commission, the European Investment Bank (EIB) and the 27 EU Member States, which are among the shareholders in the EBRD, share 66% of the Bank's capital and the USA, which holds 10%, seems to be content with the post of Vice President. But although the post seems to be his, Mr Mirow and the EBRD will have to face challenges.
The Bank was set up in 1991 to facilitate the transition of the former Communist states to market economies, and its role should diminish and disappear in countries which have acceded to the EU (as it has just done in the Czech Republic, the EBRD will gradually end its activities in Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia by 2010). It could then focus its expertise and cofinancing activities on the countries of south-eastern Europe, Ukraine, the Caucasus, central Asia and (ongoing) Russia. The profits made by the Bank (€2.4 billion in 2006) are also the subject of debate, specifically their possible redistribution. The USA is in favour of the payment of dividends, but this position is not shared by all, such that the majority of the profits will be put aside this year. “The EBRD has a great future ahead of it, especially because its scope of activity is not fixed”, but for this “the Bank needs its profits” for its future investments, those close to Commissioner Joaquín Almunia indicate. Apart from Australia, which has indicated that it will withdraw from the EBRD's capital, there is no real tendency in that direction, even if the USA regularly mentions the possibility, assures a spokesperson for the EBRD. Although the EIB Vice President, Matthias Kollatz-Ahnen, has indicated his preference for the EIB taking a majority share in the EBRD's capital, Philippe Maystadt has reset his sights. In a press release published on Wednesday 5 March, he points out that the institution over which he presides has not, at this stage, taken a position on the subject. These issues, which are a matter for the Finance Ministers, are not on the agenda, but the debate has begun. (A.B.)