Brussels, February 19 - Spanish Economy Minister Luis De Guindos was named vice president of the European Central Bank by Eurozone finance ministers in the Eurogroup on Monday. De Guindos got the nod after Ireland withdrew its candidate Philip Lane, head of the Irish central bank. The appointment is the first of a series of changes at the ECB over the coming two years, including the post of the chief of the bank currently held by Italian Mario Draghi. </s> Spain's Economy Minister Luis de Guindos answers journalists during a Eurogroup meeting at the EU headquarters in Brussels on Monday (AFP photo)

BRUSSELS — Eurozone finance ministers on Monday chose Spanish Economy Minister Luis de Guindos to succeed European Central Bank (ECB) Vice President Vitor Constancio in May, a move likely to boost the chances of a German becoming head of the ECB next year.

The choice of a Southern European for vice president increases the likelihood that a northerner such as German Bundesbank Governor Jens Weidmann could be elected to replace Mario Draghi as head of the ECB in 2019. This could influence the bank's ultra-loose monetary policy.

"The Eurogroup [of eurozone finance ministers] today gave its support to the candidacy of Luis de Guindos for the position of vice president of the European Central Bank [ECB]," an EU statement said after a brief discussion among finance ministers.

De Guindos said he would resign as economy minister within days after being chosen as ECB vice president.

Initially faced with two candidates — de Guindos and Irish central bank governor Philip Lane — the ministers had their choice made simple for them by Ireland's decision to withdraw Lane's name.

"I believe that it is crucial that the election of a new vice president for the ECB is based on consensus, and should not be a source for any disagreement," Irish Finance Minister Paschal Donohoe said in a statement.

"In that context, I have decided that, on balance, it would be in the interests of the Euro-area as a whole to withdraw Philip's candidacy in advance of any vote," he said, adding that de Guindos had an "excellent track record".

Ministers said the appointment of De Guindos should be finalised by EU leaders in a regular summit on March 22-23.

The European Parliament's economic committee, which has only a consultative role, said after an informal hearing of both candidates last week that Lane was a better choice, but eurozone officials said de Guindos was the favourite.

Spain, the eurozone's fourth-largest economy, has not had a representative on the executive board of the ECB since Jose Manuel Gonzalez-Paramo's term ended in 2012.

Ireland has never held a post in the ECB at all, but Lane is widely seen as a top candidate to become ECB chief economist when Peter Praet leaves his position next year, eurozone officials said.

The choice of a Southern European for vice president could pave the way for Weidmann to be elected at the head of the ECB next year.

"It looks like that is the case," one eurozone official said. "But it is a chess game and we don't know all the players yet. Lane would be well placed as chief economist, but Weidmann depends on the distribution of the big jobs in 2019."

The "big jobs" include the head of the European Commission, the chairman of European Union leaders and the head of the European Parliament —all of which will come up for replacement in 2019.

Eurozone officials said Weidmann could get the ECB top job if, for instance, France got the presidency of the European Commission, naming someone like the EU's chief Brexit negotiator, Michel Barnier, or IMF head Christine Lagarde.

Picking the Bundesbank chief for the ECB presidency may be tricky. Although Weidmann is considered a top-notch central banker, he has alienated some officials with his opposition to the ECB's ultra-easy monetary policy, which is credited with reviving economic growth.

Some other central bank governors regarded this as disloyalty in a time of crisis.

Weidmann has also ruffled some political feathers, clashing publicly with Italy's then-prime minister, Matteo Renzi, over Rome's failure to cut its debt further.

After being on the losing side in the ECB's big decisions on economic stimulus, Weidmann might also find it hard to unite the Governing Council, which strives for consensus decisions and rarely resorts to voting. </s> Eurozone finance ministers on Monday (19/02/2017) have endorsed Spanish Economy Minister Luis de Guindos to succeed European Central Bank (ECB) vice president Vitor Constancio in May, the choice will enlarge the chances of a German becoming head of the ECB next year.

#Eurogroup gives its support to the candidacy of @LdeGuindos for the position of #ECB Vice President

=> press release: https://t.co/6JepWJreZc pic.twitter.com/kS4uch1ut5 </s> BRUSSELS (Reuters) - Euro zone finance ministers on Monday chose Spanish Economy Minister Luis de Guindos to succeed European Central Bank Vice President Vitor Constancio in May, a move likely to boost the chances of a German becoming head of the ECB next year.

The choice of a Southern European for vice president increases the likelihood that a northerner such as German Bundesbank governor Jens Weidmann could be elected to replace Mario Draghi as head of the ECB in 2019. This could influence the bank’s ultra-loose monetary policy for the 19-country common currency area.

“The Eurogroup (of euro zone finance ministers) today gave its support to the candidacy of Luis de Guindos for the position of Vice President of the European Central Bank (ECB),” an EU statement said after a brief discussion among finance ministers.

After being chosen as ECB Vice-President, De Guindos said he would resign as Economy Minister within days.

Some EU lawmakers opposed his appointment fearing the nomination of a politician could affect the independence of the ECB. But De Guindos dismissed this criticism.

“I have been a minister, but to be a minister is something that does not limit the defense that I make on the independence of the European Central Bank. I will defend the independence of the European Central Bank,” de Guindos told reporters after his appointment.

Initially faced with two candidates -- de Guindos and Irish central bank governor Philip Lane -- the ministers had their choice made simple for them by Ireland’s decision to withdraw Lane’s name.

“I believe that it is crucial that the election of a new Vice-President for the ECB is based on consensus, and should not be a source for any disagreement,” Irish Finance Minister Paschal Donohoe said in a statement before the ministers’ meeting.

“In that context, I have decided that, on balance, it would be in the interests of the euro area as a whole to withdraw Philip’s candidacy in advance of any vote,” he said, adding that de Guindos had an “excellent track record”.

Ministers said the appointment of De Guindos should be finalised by EU leaders in a regular summit on March 22-23.

The European Parliament’s economic committee, which has only a consultative role, said after an informal hearing of both candidates last week that Lane was a better choice.

Spain, the euro zone’s fourth-largest economy, has not had a representative on the executive board of the ECB since Jose Manuel Gonzalez-Paramo’s term ended in 2012.

Ireland has never held a post in the ECB at all, but Lane is widely seen as a top candidate to become ECB chief economist when Peter Praet leaves his position next year, euro zone officials said.

The choice of a Southern European for vice president could pave the way for Weidmann to be elected at the head of the ECB next year.

“It looks like that is the case,” one euro zone official said. “But it is a chess game and we don’t know all the players yet. Lane would be well placed as chief economist, but Weidmann depends on the distribution of the big jobs in 2019.”

The “big jobs” include the head of the European Commission, the chairman of European Union leaders and the head of the European Parliament -- all of which will come up for replacement in 2019.

Euro zone officials said Weidmann could get the ECB top job if, for instance, France got the presidency of the European Commission, naming someone like the EU’s chief Brexit negotiator, Michel Barnier, or IMF head Christine Lagarde.

Picking the Bundesbank chief for the ECB presidency may be tricky. Although Weidmann is considered a top-notch central banker, he has alienated some officials with his opposition to the ECB’s ultra-easy monetary policy, which is credited with reviving economic growth.

Some other central bank governors regarded this as disloyalty in a time of crisis.

Asked whether his appointment could pave the way for a German head of the ECB, De Guindos denied any link between the two positions. He said that no country that supported him asked for anything in return.

“There is no conditionality attached at all,” he said.

Weidmann has also ruffled some political feathers, clashing publicly with Italy’s then-prime minister, Matteo Renzi, over Rome’s failure to cut its debt further.

After being on the losing side in the ECB’s big decisions on economic stimulus, Weidmann might also find it hard to unite the Governing Council, which strives for consensus decisions and rarely resorts to voting. </s> Luis de Guindos is set to be named new Vice President of the ECB. REUTERS/Susana Vera

BRUSSELS (Reuters) — Euro zone finance ministers will choose Spanish Economy Minister Luis de Guindos to succeed European Central Bank Vice President Vitor Constancio in May, a move likely to boost the chances of a German becoming head of the ECB next year.

Initially faced with two candidates -- de Guindos and Irish central bank governor Philip Lane -- the ministers had their choice made simple for them by Ireland's decision to withdraw Lane's name.

"I believe that it is crucial that the election of a new Vice-President for the ECB is based on consensus, and should not be a source for any disagreement," Irish Finance Minister Paschal Donohoe said in a statement.

"In that context, I have decided that, on balance, it would be in the interests of the Euro-area as a whole to withdraw Philip's candidacy in advance of any vote," he said, adding that de Guindos had an "excellent track record".

The European Parliament's economic committee, which has only a consultative role, said after an informal hearing of both candidates last week that Lane was a better choice, but euro zone officials said de Guindos was the favorite.

Spain, the euro zone's fourth-largest economy, has not had a representative on the executive board of the ECB since Jose Manuel Gonzalez-Paramo's term ended in 2012.

Ireland has never held a post in the ECB at all, but Lane is widely seen as a top candidate to become ECB chief economist when Peter Praet leaves his position next year, euro zone officials said.

The choice of a southern European for vice president increases the chances that a northerner such as German Bundesbank governor Jens Weidmann could be elected to replace Mario Draghi as head of the ECB in 2019.

"It looks like that is the case," one euro zone official said. "But it is a chess game and we don't know all the players yet. Lane would be well placed as chief economist, but Weidmann depends on the distribution of the big jobs in 2019."

The "big jobs" include the head of the European Commission, the chairman of European Union leaders and the head of the European Parliament -- all of which will come up for replacement in 2019.

Euro zone officials said Weidmann could get the ECB top job if, for instance, France got the presidency of the European Commission, naming someone like the EU's chief Brexit negotiator, Michel Barnier, or IMF head Christine Lagarde.

Picking the Bundesbank chief for the ECB presidency may be tricky; although Weidmann is considered a top-notch central banker, he has alienated some officials with his opposition to the ECB's ultra-easy monetary policy, which is credited with reviving economic growth.

Some other central bank governors regarded this as disloyalty in a time of crisis.

Weidmann has also ruffled some political feathers, clashing publicly with Italy's then-prime minister, Matteo Renzi, over Rome's failure to cut its debt further.

After being on the losing side in the ECB's big decisions on economic stimulus, Weidmann might also find it hard to unite the Governing Council, which strives for consensus decisions and rarely resorts to voting. </s> Billy is the editor of Verdict. You can reach him at billy.bambrough@verdict.co.uk

Eurozone finance ministers will convene in Brussels today to decide who will be the next European Central Bank (ECB) vice-president.

Ministers are also expected to review Greece’s economic adjustment programme, the reform of the European Stability Mechanism.

Last week it was revealed the economic committee of the European Parliament sees Irish central bank governor Philip Lane as a stronger candidate for the post of European Central Bank vice president than Spanish economy minister Luis de Guindos.

However, after intense lobbying of German chancellor Angela Merkel and other leaders by Mariano Rajoy, Spain’s prime minister, Guindos would appear on track to win support for the job today.

Vitor Constancio has been ECB vice-president since June 2010. Before that he served as governor of the Bank of Portugal from 2000.

Officials from Austria, Cyprus and Finland say they are leaning toward supporting Guindos, according to the Bloomberg survey.

Euro zone ministers pick a candidate today with a formal vote tomorrow when they are joined by non-euro zone EU finance ministers.

The candidate then has a hearing with the parliament’s committee and the ECB is asked for an opinion.

Who are the two candidates?

Lane is a member of the ECB’s governing council and is well versed in how the Bank works — this could be a deciding factor in the race.

However, there have been reports suggesting Lane is more interested the position of ECB chief economist, which will be vacant next year.

Guindos — a former finance minister but not a central banker — was criticised by the European Parliament for not having the right kind of experience for the ECB role.

As finance minister in the Spanish conservative government since 2011, he is the longest-serving member of the Eurogroup — and ran to be its president in 2015.

Guindos worked previously at Lehman Brothers bank and the PriceWaterhouseCoopers consultancy firm.

What was said:

The economic committee of the European Parliament chairman Roberto Gualtieri said in a statement:

Sven Giegold, the spokesman for economic and financial affairs for the Greens/EFA Group in the European Parliament, said:

The appointment will be the first in a reshuffle in positions within the central bank that could change the course of its monetary policy.

Four out of six positions within the ECB executive board will have to be replaced by the end of 2019. The first of these will take place on June 1, which will be the new vice president’s first day on the job. </s> BRUSSELS, Feb 19 (Reuters) - Euro zone finance ministers are likely to agree on Monday to back Spanish Economy Minister Luis de Guindos to succeed European Central Bank Vice President Vitor Constancio in May, a move likely to boost the chances of a German becoming the head of the ECB next year.

The discussion among the finance ministers of the 19 euro zone countries is informal, with a vote scheduled only for Tuesday when they will have to decide between the Spaniard and Ireland’s central bank governor Philip Lane.

A senior euro zone official involved in the preparation of the meeting has said the preferred scenario was that there would be no vote but one person would be chosen by consensus.

If there were to be a vote, the successful candidate would have to get 14 out of the 19 votes and these would have to represent 65 percent of the euro zone population.

The European Parliament’s economic committee, which has only a consultative role, said after an informal hearing of both candidates last week that Lane was a better choice, but euro zone officials said de Guindos was the favourite.

Lane was more likely to get the job of ECB chief economist after Peter Praet when the post becomes vacant next year, they said.

The choice of a southerner like de Guindos for vice president increases the chances that a northerner like German central bank governor Jens Weidmann could be elected to replace Mario Draghi as the ECB head in 2019.

“It looks like that is the case,” one euro zone official said. “But it is a chess game and we don’t know all the players yet. Lane would be well placed as chief economist but Weidmann depends on the distribution of the big jobs in 2019.”

The “big jobs” include the head of the European Commission, the chairman of European Union leaders and the head of the European Parliament -- all of which will come up for replacement in 2019.

Euro zone officials said Weidmann could get the ECB top job if, for instance, a Frenchman became the head of the European Commission -- someone like the EU’s chief Brexit negotiator Michel Barnier or the head of he IMF Christine Lagarde.

Picking the Bundesbank chief for the ECB presidency may be tricky, even though Weidmann is considered a top-notch central banker, because he has alienated some officials with his opposition to the ECB’s ultra easy monetary policy, which is credited with reviving economic growth.

Some other central bank governors regarded this as disloyalty in a time of crisis.

Weidmann has also ruffled some political feathers, engaging in public exchanges with former Italian prime minister Matteo Renzi by criticising Rome’s performance in cutting its debt.

After joining the losing side in the ECB’s biggest decisions to stimulate the economy, Weidmann could also struggle to unite the Governing Council, which rarely takes votes and strives for the broadest possible consensus. (Editing by Matthew Mpoke Bigg) </s> David-Maria Sassoli, an Italian politician from the Progressive Alliance of Socialists and Democrats has been elected the European Parliament President.

​In the first round of voting, Sassoli received 325 votes. Jan Zahradil, a Czech politician from the European Conservatives and Reformists, received 162 votes. Ska Keller, a German politician of the Greens, secured 133 votes. Spaniard Sira Rego of the European United Left-Nordic Green Left garnered 42 votes.

Sassoli secured 345 votes in the second ballot. The absolute majority required is 334 votes.

A day earlier, EU leaders announced their picks to head key EU institutions after days of wrangling.

The European Council chose German Defence Minister Ursula von der Leyen as a candidate for president of the European Commission. She will need the backing of a majority at the European Parliament to head the commission.

Belgian Prime Minister Charles Michel was named the new president of the European Council.

Christine Lagarde of the International Monetary Fund was submitted as a candidate for president of the European Central Bank (ECB). Her nomination needs support from the European Parliament and the ECB's Governing Council.

Spanish Foreign Minister Josep Borell is considered as a candidate for High Representative of the Union for Foreign Affairs and Security Policy. He will be confirmed by the Commission's president-elect.​ </s> Christine Lagarde is resigning as managing director of the International Monetary Fund in light of her nomination to be the next president of the European Central Bank.

Lagarde has already given up her day-to-day duties as head of the IMF, and the international lending agency has named a top deputy, David Lipton, as acting managing director.

"I have made this decision in the best interest of the Fund, as it will expedite the selection process for my successor," Lagarde said today.

Lagarde said her resignation will be effective on September 12.

Lagarde took over the IMF in 2011 after her predecessor, Dominique Strauss-Kahn, was ensared in sexual assault allegations.

As managing director, she coordinated large bailout loans for Greece in concert with the ECB and European Union.

She was nominated to be the first woman president of the ECB July 2 by the eurozone's 19 member governments.

If her nomination is approved, Lagarde will replace Mario Draghi, who has pushed the ECB's benchmark interest rate to record lows near zero and has spent 2.6 trillion euros on European financial assets in an effort to boost growth and inflation.

Under Lagarde's leadership, the IMF has supported those efforts and warned against premature rate hikes. </s> Image copyright Getty Images Image caption Christine Lagarde has become known as the "rock star" of international finance

Christine Lagarde has said she will step down as managing director of the International Monetary Fund (IMF).

It comes ahead of a decision on her nomination to become head of the European Central Bank (ECB).

Ms Lagarde said she would leave the IMF on 12 September.

"With greater clarity now on the process for my nomination as ECB president and the time it will take, I have made this decision in the best interest of the fund," she said.

"The executive board will now be taking the necessary steps to move forward with the process for selecting a new managing director."

The former French cabinet minister has been head of the IMF since 2011.

If the European Council approves her ECB nomination, she will become the central bank's first ever female leader, responsible for the euro and the monetary policy of the eurozone.

Known as the "rock star" of international finance, Ms Lagarde, 63, began her career as a lawyer before moving into politics.

She served in various ministerial posts under Nicolas Sarközy before being elected as the first female boss of the IMF - replacing Dominique Strauss Khan.

Analysis by Andrew Walker, BBC economics correspondent

Who will take over at the IMF? The nominations will start coming in soon enough. But the selection raises once again an old sore in arrangements for the leadership of the IMF and the World Bank.

There was a post-Second World War understanding - or carve-up if you prefer - that the top job at the IMF would go to a European, while an American would run the World Bank. Christine Lagarde continued that tradition.

She was the IMF's fifth French managing director. The issue was last reopened earlier this year, when a vacancy suddenly arose at the top of the World Bank. President Trump's nominee, David Malpass got the job. There have been challenges to the established practice.

When Ms Lagarde was selected, the Mexican central banker Agustin Carstens ran against her, and there were non-European nominations before that. It would not be a surprising if there were more this time. So far, however the post war deal has held up.

Image copyright Getty Images Image caption Ms Lagarde is known as the "rock star" of international finance

Consistently ranked among the top 10 most powerful women globally, Ms Lagarde has helped to rebuild the IMF's credibility following Greece's 2010 bailout, which bent the fund's rules.

She also presided over the IMF's biggest bailout, a $57bn deal for Argentina last year that many credited with arresting emerging market turbulence.

Last year, she was reported to have said "no, no, no no, no no" when asked if she was interested in running the European Central Bank (ECB).

However, she later described receiving the nomination as "an honour".

The role is likely to test the silver-haired 63-year-old, who has admitted before that she lacks economic experience. Dark clouds are hovering over Italy's banking sector and the bloc is in the midst of a slowdown.

However, one former IMF official said her leadership of the fund meant she was "exceptionally qualified" to run the ECB.

Christine Lagarde's career

1956: Born in Paris

1973: Wins scholarship to exclusive US school for a year, where she perfects her English

1981: After law school in Paris, joins international law firm Baker & McKenzie as an associate, becoming chair 18 years later

2005: Becomes France's trade minister in 2005

2007: Becomes France's finance minister, the first woman to hold this post not just in France but in any of the G8 major industrial countries

2011: Becomes head of the IMF

2019: Nominated to become president of the European Central Bank
Spanish Minister of Economy and Competitiveness, Luis de Guindos, is set to be nominated by the Eurogroup to succeed Vítor Constâncio as Vice-President of the European Central Bank.