The economist is currently Vice President of the Bundesbank.
(Photo: imago images/IPON)
Frankfurt Bundesbank Vice President Claudia Buch has suffered a setback in the race for the post of chief bank supervisor. After an informal hearing before the Economic and Monetary Affairs Committee of the European Parliament (ECON), the coordinators of the political groups spoke out in favor of Buch’s Spanish competitor Margarita Delgado, as several insiders told the Handelsblatt. Politico, Reuters and the Platov Brief also reported on it.
The decisive factor is Delgado’s long experience in banking supervision. Committee Chair Irene Tingali is said to have already expressed the opinion in a conversation with ECB President Christine Lagarde. She will also write her a letter about it. The ECB and the Bundesbank declined to comment.
The decision of the ECON committee is a clear indication, but does not automatically mean the end for Buch. The decision on personnel is made by the Governing Council of the ECB.
This is expected to be voted on at the September 14 monetary policy meeting. According to insiders, Lagarde has great sympathy for Buch. In addition, ECB Vice-President Luis de Guindos, responsible for financial stability, and the head of the European Banking Authority, José Manuel Campa, are also Spaniards. However, Campa’s term expires next year.
Should the Governing Council decide in favor of the German, Lagarde would have to be prepared for criticism from the EU Parliament. There had already been protests five years ago. At that time, several parliamentarians had spoken out in favor of the Irishwoman Sharon Donnery in a letter that had become public. In the end, however, the Governing Council decided in favor of the Italian Andrea Enria.
Lagarde’s predecessor Mario Draghi is said to have played an important role at the time. He wanted Donnery’s compatriot Philip Lane to become the new ECB chief economist. Since a nomination of Donnerys might have jeopardized this for reasons of proportional representation, he is said to have supported Enria.
More: Only two candidates left for the post of chief of the ECB’s banking supervision