Pen portraits of ECB board members
08:01 a.m. May 13, 1998 Eastern
BRUSSELS, May 13 (Reuters) - The European Parliament overwhelmingly
approved on Wednesday the composition of the six-member executive board
of the European Central Bank, including its president Dutchman Wim
Duisenberg.
The vote paves the way for the board to be formally appointed by EU
governments by the end of May and to become operational at the beginning
of June, one month ahead of the July 1, 1998 deadline laid down in the
Maastricht Treaty.
The six board members together with the 11 central bank governors of the
countries taking part in economic and monetary union (EMU) will make up
the ECB's policy-making governing council, which will take over Europe's
monetary policy reins from January 1, 1999, when EMU starts.
Following are brief sketches of the ECB board members with the number of
years for which each member has been appointed:
WIM DUISENBERG (Netherlands): (8 years, to resign mid-term) President of
European Monetary Institute (EMI) since July 1997 when he stood down
after 16 years as Dutch central bank chief. Linked the guilder tightly
to the German mark, securing low interest rates and inflation. Also
served as finance minister, worked for the International Monetary Fund
and as a commercial banker. Believes ECB should target inflation of
between zero and two percent. Would favour using intermediate money
supply goal to get there but has said ECB may need mixed policy,
including direct inflation target, at start of EMU. Hinted in Parliament
hearing last week he may serve longer than four years expected following
argument over his nomination with French government. Aged 62.
CHRISTIAN NOYER (France): (4 years) A graduate of the elite Ecole
Nationale d'Administration who is known for his recent role as head of
the Paris Club of creditor nations. He is a former Treasury director and
was on the staffs of former finance ministers Jean Arthuis and Edouard
Balladur. He has had no real function since the French Conservatives
were ousted from power in June 1997. Admits top jobs in France are
sometimes political, but has pledged to be ''totally, inflexibly''
independent in his ECB job. Does not believe in zero inflation target
due to error in measuring consumer prices but agrees ECB target range
should be up to two percent. Told Parliament last week would like ECB
and national central banks to hold on to forex, gold reserves at start
of EMU to help ECB win credibility. Aged 47.
OTMAR ISSING (Germany): (8 years) University professor free from
political affiliation. Joined the Bundesbank directorate in 1990 and is
its chief economist. Seen as a steady pair of hands with an absolute
commitment to low-inflation policies. Would prefer ECB to operate money
supply target, in line with Bundesbank, but admits may need mixed
policy, combined with inflation target at EMU's start. Cautioned last
week against assuming row over ECB presidency to mean
tighter-than-otherwise ECB policy at start of EMU. Aged 62.
SIRKKA HAMALAINEN (Finland): (5 years) Bank of Finland Governor, has
worked for the central bank and finance ministry since the early 1960s.
Took over as governor in June 1992. Hawkish figurehead of Bank's
anti-inflationary policy, which has broken the country's history of
inflation-devaluation cycles. Would favour use by ECB of direct
inflation target, arguing this would make policy easier to communicate.
Only woman on the board. Aged 59.
TOMMASO PADOA SCHIOPPA (Italy): (7 years) Was a top official at the Bank
of Italy before being named chairman of the stock market regulator
Consob in February 1997. Originally joined the central bank in 1968, and
worked there 11 years before being appointed Director General for
economic and financial affairs at the European Commission in Brussels.
Returned to the Bank of Italy in 1983. Was member of Delors Committee
which in 1988/89 drew up blueprint for EMU. In line with other board
members, believes price stability means inflation in range of zero to
two percent. Said last week believed central banks had to set policy by
looking at whole economy, not just narrow variables. Aged 57.
EUGENIO DOMINGO SOLANS (Spain): (6 years) Joined Bank of Spain as board
member in 1994. Background in private banking and as professor of public
finance at various Spanish and foreign Universities. Held top positions
at medium-sized Spanish bank Zaragozano in late 1980s and early 1990s.
Told European Parliament last week he regarded inflation as ''immoral.''
Only board member to speak since nomination in favour of use of minimum
bank reserves. Aged 52. ^REUTERS@
Copyright 1998 Reuters Limited. |
