Philip Lane bows out of ECB bid
The Government was forced to withdraw the name of Central Bank Governor Philip Lane from the race to become vice president of the European Central Bank.
Prof Lane was proposed a number of weeks ago by Finance Minister Paschal Donohoe, but has returned to “business as usual” given the decision to withdraw his candidacy.
He was one of two candidates for the role, alongside Spanish finance minister Luis De Guindos.
The former Trinity College Dublin academic is highly regarded and is still considered to be a top candidate for a future vacancy on the ECB’s six-member executive board.
The role of chief economist will be available next spring, and the Irishman is believed to be a leading contender for that role.
In what is clearly a blow to Mr Donohoe, the decision to withdraw from the race means Ireland remains the only founding member of the ECB never to have held a top post at the bank.
Announcing the decision, Mr Donohoe said Prof Lane was “an exceptionally well-qualified candidate who would make an ideal person to serve on the executive board of the European Central Bank”.
He said he had received “very positive feedback and expressions of support in relation to the candidacy from many member states who acknowledged how well qualified Philip would be for the position”.
However, the minister said he was withdrawing the governor’s nomination as it was in the interest of the ECB that the position was filled on the basis of consensus. Mr Donohoe told reporters, on entering a meeting of eurozone finance ministers in Brussels yesterday that will decide on a joint candidate, that he would withdraw Prof Lane’s candidacy so that there was one candidate only chosen by consensus.
“Today, I confirm we will not put forward his candidacy for a vote this evening,” said Mr Donohoe. “We believe that given how important a role it is as the vice president of the ECB, that the decision be made on the basis of consensus.”
A spokesperson for Prof Lane said that he welcomed the opportunity to participate in the process and now returns to business as usual at the Central Bank of Ireland.
Reacting to the news, Sinn Féin finance spokesman Pearse Doherty said he was disappointed at the defeat of Mr Lane’s nomination for the position of ECB vice-president.
