France Steps Up Bid For Euro Bank Candidate

The French government appears increasingly determined to propose its own candidate for the presidency of the future European Central Bank, one of the most powerful central banking jobs in the world.

But Europes central banking establishment Tuesday rallied to the support of Wim Duisenberg, the Dutch front-runner.

The disagreement highlights a simmering conflict between France and Germany about the role and independence of the European Central Bank. France has repeatedly criticised the statutory independence of the new central bank, but has failed in a diplomatic effort to set up a politically controlled counterweight.

A recent agreement to establish a stability council is seen as largely cosmetic by senior European monetary officials. France appears to have stepped up its behind-the-scenes manoeuvres against Duisenberg, who is seen as being too close to the Bundesbank in his approach to monetary policy.

 

French unease about Duisenberg became evident last December at the European Union summit in Dublin. President Jacques Chirac made it clear then that Duisenbergs appointment this summer as president of the European Monetary Institute (EMI), the forerunner of the central bank, did not prejudice the appointment of the president of ECB.

According to German media reports, France is proposing Michel Camdessus, managing director of the International Monetary Fund (IMF), as ECB president. In return, France would support a German chairman for the IMF.

The Elys