The first President of the Bank was Wim Duisenberg, the former president of the Dutch central bank and the European Monetary Institute. While Duisenberg had been the head of the EMI (taking over from Alexandre Lamfalussy of Belgium) just before the ECB came into existence, the French government wanted Jean-Claude Trichet, former head of the French central bank, to be the ECB's first president. The French argued that since the ECB was to be located in Germany, its president should be French. This was opposed by the German, Dutch and Belgian governments who saw Duisenberg as a guarantor of a strong euro. Tensions were abated by a gentleman's agreement in which Duisenberg would stand down before the end of his mandate, to be replaced by Trichet. COUNT 5
QSN1 Who was the first president of the ECB? ANS1 Wim Duisenberg QSN2 What was Duisenberg's previous business experience? ANS2 former president of the Dutch central bank and the European Monetary Institute QSN3 Who did the French government think was best candidate for President of the ECB? ANS3 Jean-Claude Trichet QSN4 Why did the French want a French bank president? ANS4 since the ECB was to be located in Germany, its president should be French QSN5 What did the French, German, Dutch and Belgian governments finally compromise on with regards to managing the ECB? ANS5 Duisenberg would stand down before the end of his mandate, to be replaced by Trichet