Ministers kiezen Portugese vice-voorzitter ECB (en)
EU finance ministers have thrown their support behind Portugal's Vitor Constancio to take over the key job of deputy head of the European Central Bank.
The decision to replace current vice-president, Greece's Lucas Papademos, set to step down this summer, with another southern European, is seen as increasing the chances of German Bundesbank chief Axel Weber to take the top stop next year.
Current ECB i president Jean-Claude Trichet i's term expires in October 2011, with senior EU posts generally filled to reflect a geographic balance.
The recommendation adopted by the 27 EU finance ministers on Tuesday (16 February) in support of Mr Constancio will now go to the European parliament, the ECB's governing council and national leaders for ratification during a European summit next month.
Mr Constancio is a former Socialist lawmaker and party leader and has been governor of Portugal's central bank since 2000 after a brief period at the helm between 1985 and 1986.
He has been tipped to take the lead role in expanding the ECB's responsibilities for eurozone financial stability and will have a seat on the planned European Systemic Risk Board, intended to monitor the EU's financial system as a whole for the build up of risks.
Dove vs Hawk
Analysts say Mr Constancio is regarded as being on the "dovish" wing of the ECB's governing council.
In contrast, the strong emphasis placed by ECB presidential contender Axel Weber on the need to control inflation with higher interest rates puts him among the council's "hawks", with a balance between the two schools also usually sought.
Mr Weber perplexed many economists in late 2007 with his repeated statements on the need for a tight monetary policy, even as the credit crunch took hold and others warned of a imminent slump in world growth.
The German's main challenger to take over at the reins of the eurozone's central bank, charged with setting one interest rate for its 16 members, comes in the form of Italy's central bank governor, Mario Draghi.
French and German officials argue it is too early to take any firm decisions on Mr Trichet's successor, although euro area members are silently lobbying for their preferred candidates in the background.
Despite French attempts to install Jean-Claude Trichet, the bank's first president in 1998 was Wim Duisenberg i, the former president of the Dutch central bank.
Tensions were relieved by a gentleman's agreement in which Mr Duisenberg would stand down before the end of his mandate, to be replaced by Mr Trichet, an event which occurred in November 2003.