Berlin, Brussels The starting position is difficult for Chancellor Olaf Scholz (SPD) and Finance Minister Christian Lindner (FDP). The most important European financial authorities are still headed by Germans: Elke König heads the bank resolution fund SRB, Klaus Regling heads the euro rescue fund ESM and Werner Hoyer is head of the EU investment bank EIB.
But all three posts will soon be reassigned – and it is quite possible that Germany will get nothing.
As with the ESM, there will be no German candidate for the EIB, according to government circles in Berlin. With the bank resolution fund, it is unclear. The chances aren’t particularly great. After the concentrated power for Germany, it is now the turn of others, as can be seen in many EU capitals. “National hereditary courts” at EU institutions are reluctant to be seen.
König will leave the SRB at the end of the year. The EU Commission sorts the field of applicants, nothing is known about candidates. There is still a little more time at the EIB, Hoyer’s contract runs until the end of 2023.
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However, when it comes to the allocation of posts, everything is linked to everything else: if one state applies for one position, there are hardly any chances for the others. That’s why discussions are now also taking place internally in Berlin as to who could be supported in which position.
Favorite from Luxembourg
Germany is now officially out of the ESM. There are four applications to succeed Regling: from Luxembourg, Portugal, Italy and the Netherlands. Luxembourg’s Pierre Gramegna is the favourite.
The former finance minister, who stepped down at the end of 2021 for personal reasons, attended Eurogroup meetings for eight years. The veteran is well known and appreciated by both northerners and southerners. The federal government would also like to see him in the office. The politician is said to have been pressured into running for office by several member states in order to prevent other applicants.
Pierre Gramegna, Luxembourg’s ex-finance minister, could become the new head of the ESM.
(Photo: dpa)
Gramegna’s closest rival could be former Portuguese Finance Minister João Leão, who is currently Vice Dean at the University Institute in Lisbon. The doctor of economics had reduced Portugal’s budget deficit before Prime Minister Antonio Costa replaced him.
Should he get past the Southerners he would have a strong claim. On the other hand, the Italian Marco Buti, who is the head of the cabinet of EU Monetary Affairs Commissioner Paolo Gentiloni, is given few chances. Italy has strongly criticized the ESM in recent years and blocked a reform. The fact that Rome is now striving to chair the frowned upon institution is causing astonishment in other countries.
Another outsider is Dutch contender Menno Snel. The former Secretary of State for Finance once chaired a number of meetings as deputy to the then Eurogroup boss Jeroen Dijsselbloem. However, he did not leave a lasting impression.
The ESM needs “a tough dog who will watch with eagle eyes to ensure that the ESM funds are not misappropriated,” says CSU MEP Markus Ferber. A former finance minister would certainly be a better choice for this than “a Brussels career official whose home country would prefer to misuse the ESM anyway”.
It is striking that France shows no interest in the ESM. Paris is eyeing the EIB chief post, says an insider. The investment bank, which distributes a lot of money in Europe, has been expanded in recent years.
There may already be an unofficial agreement with Berlin. That would explain why the federal government is already brushing aside the Hoyer successor.
Will Germany get another piece of the pie?
After Germany has so far been strongly represented in terms of personnel in the financial institutions, the focus could now be elsewhere: the government would like to bring the EU’s new anti-money laundering authority – Anti Money Laundering Authority (Amla) – to Frankfurt. One sees good chances for this, it is said in government circles.
That would be a boost for the financial center. Especially since Frankfurt was left empty handed by the banking regulator Eba: After Brexit, it moved from London to Paris. The anti-money laundering authority is said to be doing better now.
Preparations are underway. As a precautionary measure, financial contributions from the federal government, the state of Hesse and Frankfurt would be included in the budget for the Amla, a total of two million euros from 2023, according to government circles.
The personnel decisions at the ESM, EIB and SRB are not officially related to the location allocation at Amla. But success with the anti-money laundering authority would outweigh the foreseeable loss of the top posts in the public eye. Unlike a staffing, settlement is ultimately permanent.
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