Brussels, February 19 - Spanish Economy Minister Luis De Guindos was named vice president of the European Central Bank by Eurozone finance ministers in the Eurogroup on Monday. De Guindos got the nod after Ireland withdrew its candidate Philip Lane, head of the Irish central bank. The appointment is the first of a series of changes at the ECB over the coming two years, including the post of the chief of the bank currently held by Italian Mario Draghi.</s>BRUSSELS (Reuters) - Euro zone finance ministers on Monday chose Spanish Economy Minister Luis de Guindos to succeed European Central Bank Vice President Vitor Constancio in May, a move likely to boost the chances of a German becoming head of the ECB next year.

The choice of a Southern European for vice president increases the likelihood that a northerner such as German Bundesbank governor Jens Weidmann could be elected to replace Mario Draghi as head of the ECB in 2019. This could influence the bank’s ultra-loose monetary policy for the 19-country common currency area.

“The Eurogroup (of euro zone finance ministers) today gave its support to the candidacy of Luis de Guindos for the position of Vice President of the European Central Bank (ECB),” an EU statement said after a brief discussion among finance ministers.

After being chosen as ECB Vice-President, De Guindos said he would resign as Economy Minister within days.

Some EU lawmakers opposed his appointment fearing the nomination of a politician could affect the independence of the ECB. But De Guindos dismissed this criticism.

“I have been a minister, but to be a minister is something that does not limit the defense that I make on the independence of the European Central Bank. I will defend the independence of the European Central Bank,” de Guindos told reporters after his appointment.

Initially faced with two candidates -- de Guindos and Irish central bank governor Philip Lane -- the ministers had their choice made simple for them by Ireland’s decision to withdraw Lane’s name.

“I believe that it is crucial that the election of a new Vice-President for the ECB is based on consensus, and should not be a source for any disagreement,” Irish Finance Minister Paschal Donohoe said in a statement before the ministers’ meeting.

“In that context, I have decided that, on balance, it would be in the interests of the euro area as a whole to withdraw Philip’s candidacy in advance of any vote,” he said, adding that de Guindos had an “excellent track record”.

Ministers said the appointment of De Guindos should be finalised by EU leaders in a regular summit on March 22-23.

The European Parliament’s economic committee, which has only a consultative role, said after an informal hearing of both candidates last week that Lane was a better choice.

Spain, the euro zone’s fourth-largest economy, has not had a representative on the executive board of the ECB since Jose Manuel Gonzalez-Paramo’s term ended in 2012.

Ireland has never held a post in the ECB at all, but Lane is widely seen as a top candidate to become ECB chief economist when Peter Praet leaves his position next year, euro zone officials said.

The choice of a Southern European for vice president could pave the way for Weidmann to be elected at the head of the ECB next year.

“It looks like that is the case,” one euro zone official said. “But it is a chess game and we don’t know all the players yet. Lane would be well placed as chief economist, but Weidmann depends on the distribution of the big jobs in 2019.”

The “big jobs” include the head of the European Commission, the chairman of European Union leaders and the head of the European Parliament -- all of which will come up for replacement in 2019.

Euro zone officials said Weidmann could get the ECB top job if, for instance, France got the presidency of the European Commission, naming someone like the EU’s chief Brexit negotiator, Michel Barnier, or IMF head Christine Lagarde.

Picking the Bundesbank chief for the ECB presidency may be tricky. Although Weidmann is considered a top-notch central banker, he has alienated some officials with his opposition to the ECB’s ultra-easy monetary policy, which is credited with reviving economic growth.

Some other central bank governors regarded this as disloyalty in a time of crisis.

Asked whether his appointment could pave the way for a German head of the ECB, De Guindos denied any link between the two positions. He said that no country that supported him asked for anything in return.

“There is no conditionality attached at all,” he said.

Weidmann has also ruffled some political feathers, clashing publicly with Italy’s then-prime minister, Matteo Renzi, over Rome’s failure to cut its debt further.

After being on the losing side in the ECB’s big decisions on economic stimulus, Weidmann might also find it hard to unite the Governing Council, which strives for consensus decisions and rarely resorts to voting.</s>BRUSSELS (Reuters) - Euro zone finance ministers on Monday chose Spanish Economy Minister Luis de Guindos to succeed European Central Bank Vice President Vitor Constancio in May, a move likely to boost the chances of a German becoming head of the ECB next year.

The choice of a Southern European for vice president increases the likelihood that a northerner such as German Bundesbank governor Jens Weidmann could be elected to replace Mario Draghi as head of the ECB in 2019. This could influence the bank’s ultra-loose monetary policy for the 19-country common currency area.

“The Eurogroup (of euro zone finance ministers) today gave its support to the candidacy of Luis de Guindos for the position of Vice President of the European Central Bank (ECB),” an EU statement said after a brief discussion among finance ministers.

After being chosen as ECB Vice-President, De Guindos said he would resign as Economy Minister within days.

Some EU lawmakers opposed his appointment fearing the nomination of a politician could affect the independence of the ECB. But De Guindos dismissed this criticism.

“I have been a minister, but to be a minister is something that does not limit the defense that I make on the independence of the European Central Bank. I will defend the independence of the European Central Bank,” de Guindos told reporters after his appointment.

Initially faced with two candidates -- de Guindos and Irish central bank governor Philip Lane -- the ministers had their choice made simple for them by Ireland’s decision to withdraw Lane’s name.

“I believe that it is crucial that the election of a new Vice-President for the ECB is based on consensus, and should not be a source for any disagreement,” Irish Finance Minister Paschal Donohoe said in a statement before the ministers’ meeting.

“In that context, I have decided that, on balance, it would be in the interests of the euro area as a whole to withdraw Philip’s candidacy in advance of any vote,” he said, adding that de Guindos had an “excellent track record”.

Ministers said the appointment of De Guindos should be finalised by EU leaders in a regular summit on March 22-23.

The European Parliament’s economic committee, which has only a consultative role, said after an informal hearing of both candidates last week that Lane was a better choice.

Spain, the euro zone’s fourth-largest economy, has not had a representative on the executive board of the ECB since Jose Manuel Gonzalez-Paramo’s term ended in 2012.

Ireland has never held a post in the ECB at all, but Lane is widely seen as a top candidate to become ECB chief economist when Peter Praet leaves his position next year, euro zone officials said.

The choice of a Southern European for vice president could pave the way for Weidmann to be elected at the head of the ECB next year.

“It looks like that is the case,” one euro zone official said. “But it is a chess game and we don’t know all the players yet. Lane would be well placed as chief economist, but Weidmann depends on the distribution of the big jobs in 2019.”

The “big jobs” include the head of the European Commission, the chairman of European Union leaders and the head of the European Parliament -- all of which will come up for replacement in 2019.

Euro zone officials said Weidmann could get the ECB top job if, for instance, France got the presidency of the European Commission, naming someone like the EU’s chief Brexit negotiator, Michel Barnier, or IMF head Christine Lagarde.

Picking the Bundesbank chief for the ECB presidency may be tricky. Although Weidmann is considered a top-notch central banker, he has alienated some officials with his opposition to the ECB’s ultra-easy monetary policy, which is credited with reviving economic growth.

Some other central bank governors regarded this as disloyalty in a time of crisis.

Asked whether his appointment could pave the way for a German head of the ECB, De Guindos denied any link between the two positions. He said that no country that supported him asked for anything in return.

“There is no conditionality attached at all,” he said.

Weidmann has also ruffled some political feathers, clashing publicly with Italy’s then-prime minister, Matteo Renzi, over Rome’s failure to cut its debt further.

After being on the losing side in the ECB’s big decisions on economic stimulus, Weidmann might also find it hard to unite the Governing Council, which strives for consensus decisions and rarely resorts to voting.</s>Spain's Economy Minister Luis de Guindos answers journalists during a Eurogroup meeting at the EU headquarters in Brussels on Monday (AFP photo)

BRUSSELS — Eurozone finance ministers on Monday chose Spanish Economy Minister Luis de Guindos to succeed European Central Bank (ECB) Vice President Vitor Constancio in May, a move likely to boost the chances of a German becoming head of the ECB next year.

The choice of a Southern European for vice president increases the likelihood that a northerner such as German Bundesbank Governor Jens Weidmann could be elected to replace Mario Draghi as head of the ECB in 2019. This could influence the bank's ultra-loose monetary policy.

"The Eurogroup [of eurozone finance ministers] today gave its support to the candidacy of Luis de Guindos for the position of vice president of the European Central Bank [ECB]," an EU statement said after a brief discussion among finance ministers.

De Guindos said he would resign as economy minister within days after being chosen as ECB vice president.

Initially faced with two candidates — de Guindos and Irish central bank governor Philip Lane — the ministers had their choice made simple for them by Ireland's decision to withdraw Lane's name.

"I believe that it is crucial that the election of a new vice president for the ECB is based on consensus, and should not be a source for any disagreement," Irish Finance Minister Paschal Donohoe said in a statement.

"In that context, I have decided that, on balance, it would be in the interests of the Euro-area as a whole to withdraw Philip's candidacy in advance of any vote," he said, adding that de Guindos had an "excellent track record".

Ministers said the appointment of De Guindos should be finalised by EU leaders in a regular summit on March 22-23.

The European Parliament's economic committee, which has only a consultative role, said after an informal hearing of both candidates last week that Lane was a better choice, but eurozone officials said de Guindos was the favourite.

Spain, the eurozone's fourth-largest economy, has not had a representative on the executive board of the ECB since Jose Manuel Gonzalez-Paramo's term ended in 2012.

Ireland has never held a post in the ECB at all, but Lane is widely seen as a top candidate to become ECB chief economist when Peter Praet leaves his position next year, eurozone officials said.

The choice of a Southern European for vice president could pave the way for Weidmann to be elected at the head of the ECB next year.

"It looks like that is the case," one eurozone official said. "But it is a chess game and we don't know all the players yet. Lane would be well placed as chief economist, but Weidmann depends on the distribution of the big jobs in 2019."

The "big jobs" include the head of the European Commission, the chairman of European Union leaders and the head of the European Parliament —all of which will come up for replacement in 2019.

Eurozone officials said Weidmann could get the ECB top job if, for instance, France got the presidency of the European Commission, naming someone like the EU's chief Brexit negotiator, Michel Barnier, or IMF head Christine Lagarde.

Picking the Bundesbank chief for the ECB presidency may be tricky. Although Weidmann is considered a top-notch central banker, he has alienated some officials with his opposition to the ECB's ultra-easy monetary policy, which is credited with reviving economic growth.

Some other central bank governors regarded this as disloyalty in a time of crisis.

Weidmann has also ruffled some political feathers, clashing publicly with Italy's then-prime minister, Matteo Renzi, over Rome's failure to cut its debt further.

After being on the losing side in the ECB's big decisions on economic stimulus, Weidmann might also find it hard to unite the Governing Council, which strives for consensus decisions and rarely resorts to voting.</s>Spain's Economy Minister Luis de Guindos answers journalists during a Eurogroup meeting at the EU headquarters in Brussels on Monday (AFP photo)

BRUSSELS — Eurozone finance ministers on Monday chose Spanish Economy Minister Luis de Guindos to succeed European Central Bank (ECB) Vice President Vitor Constancio in May, a move likely to boost the chances of a German becoming head of the ECB next year.

The choice of a Southern European for vice president increases the likelihood that a northerner such as German Bundesbank Governor Jens Weidmann could be elected to replace Mario Draghi as head of the ECB in 2019. This could influence the bank's ultra-loose monetary policy.

"The Eurogroup [of eurozone finance ministers] today gave its support to the candidacy of Luis de Guindos for the position of vice president of the European Central Bank [ECB]," an EU statement said after a brief discussion among finance ministers.

De Guindos said he would resign as economy minister within days after being chosen as ECB vice president.

Initially faced with two candidates — de Guindos and Irish central bank governor Philip Lane — the ministers had their choice made simple for them by Ireland's decision to withdraw Lane's name.

"I believe that it is crucial that the election of a new vice president for the ECB is based on consensus, and should not be a source for any disagreement," Irish Finance Minister Paschal Donohoe said in a statement.

"In that context, I have decided that, on balance, it would be in the interests of the Euro-area as a whole to withdraw Philip's candidacy in advance of any vote," he said, adding that de Guindos had an "excellent track record".

Ministers said the appointment of De Guindos should be finalised by EU leaders in a regular summit on March 22-23.

The European Parliament's economic committee, which has only a consultative role, said after an informal hearing of both candidates last week that Lane was a better choice, but eurozone officials said de Guindos was the favourite.

Spain, the eurozone's fourth-largest economy, has not had a representative on the executive board of the ECB since Jose Manuel Gonzalez-Paramo's term ended in 2012.

Ireland has never held a post in the ECB at all, but Lane is widely seen as a top candidate to become ECB chief economist when Peter Praet leaves his position next year, eurozone officials said.

The choice of a Southern European for vice president could pave the way for Weidmann to be elected at the head of the ECB next year.

"It looks like that is the case," one eurozone official said. "But it is a chess game and we don't know all the players yet. Lane would be well placed as chief economist, but Weidmann depends on the distribution of the big jobs in 2019."

The "big jobs" include the head of the European Commission, the chairman of European Union leaders and the head of the European Parliament —all of which will come up for replacement in 2019.

Eurozone officials said Weidmann could get the ECB top job if, for instance, France got the presidency of the European Commission, naming someone like the EU's chief Brexit negotiator, Michel Barnier, or IMF head Christine Lagarde.

Picking the Bundesbank chief for the ECB presidency may be tricky. Although Weidmann is considered a top-notch central banker, he has alienated some officials with his opposition to the ECB's ultra-easy monetary policy, which is credited with reviving economic growth.

Some other central bank governors regarded this as disloyalty in a time of crisis.

Weidmann has also ruffled some political feathers, clashing publicly with Italy's then-prime minister, Matteo Renzi, over Rome's failure to cut its debt further.

After being on the losing side in the ECB's big decisions on economic stimulus, Weidmann might also find it hard to unite the Governing Council, which strives for consensus decisions and rarely resorts to voting.</s>Luis de Guindos is set to be named new Vice President of the ECB. REUTERS/Susana Vera

BRUSSELS (Reuters) — Euro zone finance ministers will choose Spanish Economy Minister Luis de Guindos to succeed European Central Bank Vice President Vitor Constancio in May, a move likely to boost the chances of a German becoming head of the ECB next year.

Initially faced with two candidates -- de Guindos and Irish central bank governor Philip Lane -- the ministers had their choice made simple for them by Ireland's decision to withdraw Lane's name.

"I believe that it is crucial that the election of a new Vice-President for the ECB is based on consensus, and should not be a source for any disagreement," Irish Finance Minister Paschal Donohoe said in a statement.

"In that context, I have decided that, on balance, it would be in the interests of the Euro-area as a whole to withdraw Philip's candidacy in advance of any vote," he said, adding that de Guindos had an "excellent track record".

The European Parliament's economic committee, which has only a consultative role, said after an informal hearing of both candidates last week that Lane was a better choice, but euro zone officials said de Guindos was the favorite.

Spain, the euro zone's fourth-largest economy, has not had a representative on the executive board of the ECB since Jose Manuel Gonzalez-Paramo's term ended in 2012.

Ireland has never held a post in the ECB at all, but Lane is widely seen as a top candidate to become ECB chief economist when Peter Praet leaves his position next year, euro zone officials said.

The choice of a southern European for vice president increases the chances that a northerner such as German Bundesbank governor Jens Weidmann could be elected to replace Mario Draghi as head of the ECB in 2019.

"It looks like that is the case," one euro zone official said. "But it is a chess game and we don't know all the players yet. Lane would be well placed as chief economist, but Weidmann depends on the distribution of the big jobs in 2019."

The "big jobs" include the head of the European Commission, the chairman of European Union leaders and the head of the European Parliament -- all of which will come up for replacement in 2019.

Euro zone officials said Weidmann could get the ECB top job if, for instance, France got the presidency of the European Commission, naming someone like the EU's chief Brexit negotiator, Michel Barnier, or IMF head Christine Lagarde.

Picking the Bundesbank chief for the ECB presidency may be tricky; although Weidmann is considered a top-notch central banker, he has alienated some officials with his opposition to the ECB's ultra-easy monetary policy, which is credited with reviving economic growth.

Some other central bank governors regarded this as disloyalty in a time of crisis.

Weidmann has also ruffled some political feathers, clashing publicly with Italy's then-prime minister, Matteo Renzi, over Rome's failure to cut its debt further.

After being on the losing side in the ECB's big decisions on economic stimulus, Weidmann might also find it hard to unite the Governing Council, which strives for consensus decisions and rarely resorts to voting.</s>Billy is the editor of Verdict. You can reach him at billy.bambrough@verdict.co.uk

Eurozone finance ministers will convene in Brussels today to decide who will be the next European Central Bank (ECB) vice-president.

Ministers are also expected to review Greece’s economic adjustment programme, the reform of the European Stability Mechanism.

Last week it was revealed the economic committee of the European Parliament sees Irish central bank governor Philip Lane as a stronger candidate for the post of European Central Bank vice president than Spanish economy minister Luis de Guindos.

However, after intense lobbying of German chancellor Angela Merkel and other leaders by Mariano Rajoy, Spain’s prime minister, Guindos would appear on track to win support for the job today.

Vitor Constancio has been ECB vice-president since June 2010. Before that he served as governor of the Bank of Portugal from 2000.

Officials from Austria, Cyprus and Finland say they are leaning toward supporting Guindos, according to the Bloomberg survey.

Euro zone ministers pick a candidate today with a formal vote tomorrow when they are joined by non-euro zone EU finance ministers.

The candidate then has a hearing with the parliament’s committee and the ECB is asked for an opinion.

Who are the two candidates?

Lane is a member of the ECB’s governing council and is well versed in how the Bank works — this could be a deciding factor in the race.

However, there have been reports suggesting Lane is more interested the position of ECB chief economist, which will be vacant next year.

Guindos — a former finance minister but not a central banker — was criticised by the European Parliament for not having the right kind of experience for the ECB role.

As finance minister in the Spanish conservative government since 2011, he is the longest-serving member of the Eurogroup — and ran to be its president in 2015.

Guindos worked previously at Lehman Brothers bank and the PriceWaterhouseCoopers consultancy firm.

What was said:

The economic committee of the European Parliament chairman Roberto Gualtieri said in a statement:

Sven Giegold, the spokesman for economic and financial affairs for the Greens/EFA Group in the European Parliament, said:

The appointment will be the first in a reshuffle in positions within the central bank that could change the course of its monetary policy.

Four out of six positions within the ECB executive board will have to be replaced by the end of 2019. The first of these will take place on June 1, which will be the new vice president’s first day on the job.</s>BRUSSELS, Feb 19 (Reuters) - Euro zone finance ministers are likely to agree on Monday to back Spanish Economy Minister Luis de Guindos to succeed European Central Bank Vice President Vitor Constancio in May, a move likely to boost the chances of a German becoming the head of the ECB next year.

The discussion among the finance ministers of the 19 euro zone countries is informal, with a vote scheduled only for Tuesday when they will have to decide between the Spaniard and Ireland’s central bank governor Philip Lane.

A senior euro zone official involved in the preparation of the meeting has said the preferred scenario was that there would be no vote but one person would be chosen by consensus.

If there were to be a vote, the successful candidate would have to get 14 out of the 19 votes and these would have to represent 65 percent of the euro zone population.

The European Parliament’s economic committee, which has only a consultative role, said after an informal hearing of both candidates last week that Lane was a better choice, but euro zone officials said de Guindos was the favourite.

Lane was more likely to get the job of ECB chief economist after Peter Praet when the post becomes vacant next year, they said.

The choice of a southerner like de Guindos for vice president increases the chances that a northerner like German central bank governor Jens Weidmann could be elected to replace Mario Draghi as the ECB head in 2019.

“It looks like that is the case,” one euro zone official said. “But it is a chess game and we don’t know all the players yet. Lane would be well placed as chief economist but Weidmann depends on the distribution of the big jobs in 2019.”

The “big jobs” include the head of the European Commission, the chairman of European Union leaders and the head of the European Parliament -- all of which will come up for replacement in 2019.

Euro zone officials said Weidmann could get the ECB top job if, for instance, a Frenchman became the head of the European Commission -- someone like the EU’s chief Brexit negotiator Michel Barnier or the head of he IMF Christine Lagarde.

Picking the Bundesbank chief for the ECB presidency may be tricky, even though Weidmann is considered a top-notch central banker, because he has alienated some officials with his opposition to the ECB’s ultra easy monetary policy, which is credited with reviving economic growth.

Some other central bank governors regarded this as disloyalty in a time of crisis.

Weidmann has also ruffled some political feathers, engaging in public exchanges with former Italian prime minister Matteo Renzi by criticising Rome’s performance in cutting its debt.

After joining the losing side in the ECB’s biggest decisions to stimulate the economy, Weidmann could also struggle to unite the Governing Council, which rarely takes votes and strives for the broadest possible consensus. (Editing by Matthew Mpoke Bigg)</s>Eurozone finance ministers on Monday (19/02/2017) have endorsed Spanish Economy Minister Luis de Guindos to succeed European Central Bank (ECB) vice president Vitor Constancio in May, the choice will enlarge the chances of a German becoming head of the ECB next year.

#Eurogroup gives its support to the candidacy of @LdeGuindos for the position of #ECB Vice President

=> press release: https://t.co/6JepWJreZc pic.twitter.com/kS4uch1ut5</s>BRUSSELS, Feb 19 (Reuters) - Euro zone finance ministers are likely to agree on Monday to back Spanish Economy Minister Luis de Guindos to succeed European Central Bank Vice President Vitor Constancio in May, a move likely to boost the chances of a German becoming the head of the ECB next year.

The discussion among the finance ministers of the 19 euro zone countries is informal, with a vote scheduled only for Tuesday when they will have to decide between the Spaniard and Ireland’s central bank governor Philip Lane.

A senior euro zone official involved in the preparation of the meeting has said the preferred scenario was that there would be no vote but one person would be chosen by consensus.

If there were to be a vote, the successful candidate would have to get 14 out of the 19 votes and these would have to represent 65 percent of the euro zone population.

The European Parliament’s economic committee, which has only a consultative role, said after an informal hearing of both candidates last week that Lane was a better choice, but euro zone officials said de Guindos was the favourite.

Lane was more likely to get the job of ECB chief economist after Peter Praet when the post becomes vacant next year, they said.

The choice of a southerner like de Guindos for vice president increases the chances that a northerner like German central bank governor Jens Weidmann could be elected to replace Mario Draghi as the ECB head in 2019.

“It looks like that is the case,” one euro zone official said. “But it is a chess game and we don’t know all the players yet. Lane would be well placed as chief economist but Weidmann depends on the distribution of the big jobs in 2019.”

The “big jobs” include the head of the European Commission, the chairman of European Union leaders and the head of the European Parliament -- all of which will come up for replacement in 2019.

Euro zone officials said Weidmann could get the ECB top job if, for instance, a Frenchman became the head of the European Commission -- someone like the EU’s chief Brexit negotiator Michel Barnier or the head of he IMF Christine Lagarde.

Picking the Bundesbank chief for the ECB presidency may be tricky, even though Weidmann is considered a top-notch central banker, because he has alienated some officials with his opposition to the ECB’s ultra easy monetary policy, which is credited with reviving economic growth.

Some other central bank governors regarded this as disloyalty in a time of crisis.

Weidmann has also ruffled some political feathers, engaging in public exchanges with former Italian prime minister Matteo Renzi by criticising Rome’s performance in cutting its debt.

After joining the losing side in the ECB’s biggest decisions to stimulate the economy, Weidmann could also struggle to unite the Governing Council, which rarely takes votes and strives for the broadest possible consensus. (Editing by Matthew Mpoke Bigg)
Spanish Minister of Economy and Competitiveness, Luis de Guindos, is set to be nominated by the Eurogroup to succeed Vítor Constâncio as Vice-President of the European Central Bank.