Markets are keen to discover who will next control monetary policy in the euro zone as the current president of the European Central Bank (ECB) Mario Draghi approaches the end of his mandate.
In the run up to the change in the presidency, in October of next year, there are a number of top jobs that Europe has to fill. These appointments will help to shed light on who will take the seat in Frankfurt.
For example, Luis de Guindos, former economy minister of Spain was appointed as vice-president of the ECB earlier this year. Several analysts suggested that the top job at the central bank might therefore go to a northern European, i.e. someone potentially more prone to raise rates faster.
A balance of nationalities is seen as crucial to the ECB's top management and therefore the next appointment to run the Single Supervisory Mechanism (SSM) — the European institution that oversees banks in the euro zone — may provide another vital clue to Draghi's successor.
Daniele Nouy, who currently chairs the institution, is set to end her five-year mandate at the end of this year.
At the moment, there are three names on the table that could replace the French banking expert: Sharon Donnery, Ireland's central bank deputy governor; Andrea Enria, chair of the European Banking Authority; and Robert Ophele, president of the French banking regulator.
The European Parliament is reportedly more supportive of the two first names.
The European Central Bank did not want to comment on when the bank will be voting on the new SSM leader. However, the Financial Times has reported that the ECB will carry the vote on November7th. The chosen candidate will then have to be approved by the European Parliament.
Reference: CNBC
Thai
Eng