Italian Premier Giorgia Meloni’s government is planning to back former Finance Minister Daniele Franco as its candidate for the European Central Bank’s Executive Board, according to people familiar with the matter.
(Bloomberg) — Italian Premier Giorgia Meloni’s government is planning to back former Finance Minister Daniele Franco as its candidate for the European Central Bank’s Executive Board, according to people familiar with the matter.
Franco, 70, finance minister in the administration of ex-central banker Mario Draghi, became the leading candidate after it became clear that he wouldn’t win the top job at the European Investment Bank, said the people, who declined to be named because the discussions are private.
A spokesperson for the Finance Ministry declined to comment on the news, which was first reported by Il Sole 24 Ore.
Several countries proposed candidates to lead the EIB in a first round of horse trading for European top jobs, with Italy nominating Franco. It soon emerged that he was up against EU competition chief Margrethe Vestager and Spanish Deputy Premier Nadia Calvino, both considered stronger candidates for the post.
The Italian Finance Ministry is therefore planning to propose Franco for the ECB executive board post, for which candidates need to be named by Aug. 30, according to the people. That means Piero Cipollone, initially the favored candidate, won’t make the cut, they said.
Soft-spoken Franco is a Bank of Italy veteran known for his discretion and for managing the Italian economy out of the Covid-19 crisis under Draghi.
He was born near Belluno in the Italian Alps and earned a degree in political science from the University of Padua followed by a master’s in economics from the University of York. He began his career at Italy’s central bank in 1979, and rose through its ranks to become senior deputy governor.
Franco has written extensively about public spending, social welfare, European tax rules, budget policy, income distribution, fiscal federalism and taxation of financial assets.
He’s also known for his work as state comptroller, which earned him a reputation as a public servant with integrity for refusing to sign off on budget laws that didn’t have sufficient funding for spendthrift policy plans. It happened under Matteo Renzi’s center-left government and again in 2018 during Giuseppe Conte’s first administration.
Read more: EU Horse-Trading Over Top Jobs Begins as Italy Makes EIB Bid
Should he get the ECB job he would replace Fabio Panetta, one of the its most dovish officials, though he’ll likely arrive with an unprecedented bout of interest-rate hikes either already complete or very close to being finished.
Italy has been worried about rates being increased too much, with government officials repeatedly slamming the ECB’s steps to tame the worst spike in prices of the euro era.
Read more: Meloni Joins Italian Colleagues in Blasting ECB Over Hikes
The country has always named one of the executive board’s six members and Rome is counting on retaining the seat, but nothing is guaranteed. A debate on proposed candidates is expected at an informal gathering of European finances chiefs set for Santiago de Compostela in Spain on Sept. 15-16, according to the people.
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