The European Central Bank, the governing financial institution that determines the monetary policy across the entire European Union, is about to see some changes soon. The ECB is lead by a President, a role that has been fulfilled by Italian economist Mario Draghi over the past few years. Draghi has made a name for himself for being very patient and methodical, pinpointing the best course of economic action with almost surgical accuracy. His term was tasked with improving the health of the economy amid multiple financial problems and a global economic slowdown, and he has done well. However, this October his term is ending and the ECB is now considering his replacements.
Economists have so far been praising Benoit Coeure as a possible successor. He is currently overlooking the ECB’s work on the financial markets and was among the most important names in devising the stimulus plan that kept inflation rising over the last couple of years. His methods are very close to Draghi’s and if he is chosen, we would likely see a smooth transition between the two.
However, the ECB President is not actually chosen by members of the ECB, but from European leaders. With France and Germany already at positions of power, it is expected that a candidate from a less important country will be selected on purpose. This has led people to expect that Finnish banker Erkki Liikanen will most likely win the job. Liikanen has more hawkish tendencies than both Draghi and Coeure.
