President of the European Central Bank

The President of the European Central Bank is the head of the European Central Bank (ECB), the institution responsible for the management of the euro and monetary policy in the Eurozone of the European Union (EU).

President of
the European Central Bank
Logo European Central Bank
Emblem of the Central Bank
Flag of Europe
Flag of the EU
Mario Draghi 2013.jpeg
Incumbent
Mario Draghi

since 1 November 2011
European Central Bank
Institutions of the European Union
StatusHead of an Institution
Head of the Central Bank
Chair of a Council
Member ofEurogroup
Executive Board
(as its chairman)
Governing Council
(as its chairman)
General Council
(as its chairman)
Reports to
ResidenceSeat of the European Central Bank
SeatFrankfurt, Germany
AppointerPresident of the European Commission
By majority approval of the European Council.
Term lengthEight years (not renewable)
Constituting instrumentTreaties of the European Union
PrecursorPresident of the European Monetary Institute
Inaugural holderWim Duisenberg
as first President of the European Central Bank (1 June 1998)
Formation1 June 1998
DeputyVice President of the European Central Bank
Salary€396,900 p.a. (2017)[1]
Websiteecb.europa.eu

Role and appointment

The President heads the executive board, governing council and general council of the ECB. He also represents the bank abroad, for example at the G20. The President is appointed by a qualified majority vote of the European Council, de facto by those who have adopted the euro, for an eight-year non-renewable term.[2] However the first President, Duisenberg, did not serve his full term (see below)

History

Duisenberg

Wim Duisenberg was the President of the European Monetary Institute (EMI) when it became the ECB, just prior to the launch of the euro, on 1 June 1998. Duisenberg then became the first President of the ECB.

The French interpretation of the agreement made with the installation of Wim Duisenberg as ECB President was that Duisenberg would resign after just four years of his eight-year term, and would be replaced by the Frenchman Jean-Claude Trichet.[3] Duisenberg always strongly denied that such an agreement was made and stated in February 2002 that he would stay in office until his 68th birthday on 9 July 2003.

In the meanwhile Jean-Claude Trichet was not cleared of legal accusations before 1 June 2002, so he was not able to begin his term after Duisenberg's first four years. Even on 9 July 2003 Trichet was not cleared, and therefore Duisenberg remained in office until 1 November 2003. Duisenberg died on 31 July 2005.

Trichet

Jean-Claude Trichet became President in 2003 and served during the European sovereign debt crisis. Trichet's strengths lay in keeping consensus and visible calm in the ECB. During his tenure, Trichet has had to fend off criticism from French President Nicolas Sarkozy who demanded a more growth-orientated policy at the ECB. Germany supported Trichet in demanding the bank's independence be respected.[4]

However, he was also criticised from straying from his mandate during the crisis by buying the government bonds of eurozone member states. ECB board members Axel A. Weber and Jürgen Stark resigned in protest at this policy, even if it helped prevent states from defaulting. IMF economist Pau Rabanal argued that Trichet "maintained a relatively expansionary monetary policy," but even "sacrificed the ECB's inflation target for the sake of greater economic growth and jobs creation, and not the other way round." While straying from his mandate, he has however still kept interest rates under control and maintained greater price stability than the Deutsche Bundesbank did before the euro.[5][6]

As well as defending the ECB's independence and balancing its commitment to interest rates and economic stability, Trichet also fought Sarkozy for automatic sanctions in the EU fiscal reforms and against Angela Merkel against private sector involvement in bail outs so as not to scare the markets. He had however made some mistakes during the crisis, for example by: raising interest rates just after inflation topped out and just prior to the recession triggered by the Lehman Brothers collapse; also by its early timidity in buying eurozone state bonds.[5][6]

In his final appearance (his 35th) before the European Parliament, Trichet called for more political unity, including; significant new powers to be granted to the ECB, the establishment of an executive branch with a European Finance Ministry and greater oversight powers for the European Parliament. He also asserted that the ECB's role in maintaining price stability throughout the financial crisis and the oil price rises should not be overlooked.[7] He stated, in response to a question from a German newspaper attacking the ECB's credibility following its bond-buying;

...first, we were called to deliver price stability! ... We have delivered price stability over the first 12-13 years of the euro! Impeccably! I would like very much to hear some congratulations for this institution, which has delivered price stability in Germany over almost 13 years at approximately 1.55% - as the yearly average of inflation - we will recalculate the figure to the second decimal. This figure is better than any ever obtained in this country over a period of 13 years in the past 50 years. So, my first remark is this: we have a mandate and we deliver on our mandate! And we deliver in a way that is not only numerically convincing, but which is better than anything achieved in the past.
— Jean Claude Trichet at the European Parliament, 8 September 2011[8]

Draghi

Although Axel Weber was tipped as one of the possible successors,[9] he resigned from the ECB in protest at the bail out policies. Mario Draghi was chosen to become the next President of the ECB on 24 June 2011.[10] He is President since 1 November 2011.

Pascal Canfin, Member of the European Parliament, asserted that Draghi had been involved in swaps for European governments, namely Greece, trying to disguise their countries' economic status. Draghi responded that the deals were "undertaken before my joining Goldman Sachs [and] I had nothing to do with" them, in the 2011 European Parliament nomination hearings.

List

List of presidents since the establishment of the bank on 1 June 1998.

# President
(Birth–Death)
State Took office Left office
1 Wim Duisenberg Wim Duisenberg
(1935–2005)
 Netherlands 1 June 1998 31 October 2003
Previously the Dutch Minister of Finance, President of De Nederlandsche Bank and President of the European Monetary Institute.
2 Jean-Claude Trichet - World Economic Forum Annual Meeting Davos 2010 Jean-Claude Trichet
(1942–)
 France 1 November 2003 31 October 2011
Previously a member of the Group of Thirty and the Governor of the Banque de France.
3 Mario Draghi 2013.jpeg Mario Draghi
(1947–)
 Italy 1 November 2011 Incumbent
Term expires 31 October 2019
Previously a managing director of Goldman Sachs, executive Director of the World Bank, Chairman of the Financial Stability Board and Governor of the Banca d'Italia.

Vice Presidents

Vice President Christian Noyer was only appointed for four years so that his resignation would coincide with the expected resignation of Duisenberg. His successors, starting with Lucas Papademos, are granted eight-year terms.

# Vice President
(Birth–Death)
State Took office Left Office
1 Christian Noyer 2008 (cropped) Christian Noyer
(1950–)
 France 1 June 1998 31 May 2002
Previously a civil servant, advisor and head of the treasury at the French Ministry of Finance.
2 Lucas Papademos 2011-11-11 Lucas Papademos
(1947–)
 Greece 1 June 2002 31 May 2010
Previously the senior economist at the Federal Reserve Bank of Boston chief economist and then Governor of the Bank of Greece.
3 Vítor Constancio at Chatham House Vítor Constâncio
(1943–)
 Portugal 1 June 2010 31 May 2018
Previously secretary-general of the Socialist Party and Governor of the Banco de Portugal.
4 Luis de Guindos 2012 (cropped) Luis de Guindos
(1960–)
 Spain 1 June 2018 Incumbent
Term expires 31 May 2026
Previously Minister of Economy and Competitiveness of the Government of Spain.

References

  1. ^ Atalaia, Rita. "Constâncio ganhou 340 mil euros no último ano no BCE". ECO. Retrieved 22 February 2018.
  2. ^ Protocol 4 of the consolidated European treaties
  3. ^ "New ECB chief 'must be French'". BBC, Friday, 8 February 2002. Retrieved 9 April 2012.
  4. ^ Murphy, Francois (23 September 2007). "Trichet brushes off French criticism of ECB". Reuters. Retrieved 26 June 2011.
  5. ^ a b By Xavier Vidal-Folch (translated by Anton Baer) 6 October 2011 What it would have cost without Trichet, EL PAÍS, on Presseurop
  6. ^ a b The euro crisis: Is anyone in charge?, The Economist 1 October 2011
  7. ^ Martin Banks - 4 October 2011 ECB chief calls for 'significant' new powers for EU Archived 20 October 2011 at the Wayback Machine, the Parliament Magazine
  8. ^ Introductory statement to the press conference (with Q&A), ECB
  9. ^ Randow, Jana (9 February 2011). "Weber Throws ECB Race Open by Ruling Out Second Bundesbank Term". Bloomberg. Retrieved 26 June 2011.
  10. ^ Baker, Luke (24 June 2011). "EU leaders appoint Mario Draghi as new ECB president | Reuters". Uk.reuters.com. Retrieved 26 June 2011.

External links

100 euro note

The one hundred euro note (€100) is one of the higher value euro banknotes and has been used since the introduction of the euro (in its cash form) in 2002. The note is used daily by some 343 million Europeans and in the 23 countries which have it as their sole currency (with 22 legally adopting it). In August 2018, there were approximately 2,725,000,000 hundred euro banknotes in circulation in the eurozone. It is the third most widely circulated denomination, accounting for over 12% of the total banknotes.It is the third largest note measuring 147 millimetres (5.8 in) × 82 millimetres (3.2 in) and has a green colour scheme. The hundred euro notes depict bridges and arches/doorways in the Baroque and Rococo style (between the 17th and 18th century). The hundred euro note contains several complex security features such as watermarks, invisible ink, holograms and microprinting that document its authenticity.

The new banknotes of the Europa series 100 euro banknote will start circulating on 28 May 2019.

Christian Noyer

Christian Noyer (born 6 October 1950) is a French economist who served as Governor of the Bank of France from 2003 to 2015. In this capacity, he chaired the Bank for International Settlements from 2010 until 2015. He had previously served as the first Vice President of the European Central Bank from 1998 to 2002.

Draghi

Draghi is an Italian surname (from the plural of drago, "dragon") and can refer to the following:

Antonio Draghi (1634–1700), composer

Giovanni Evangelista Draghi (1657–1712), painter

Giovanni Battista Draghi (composer) (1640–1708), composer

Mario Draghi (born 1947), Italian President of the European Central Bank since 2011

Economic and Financial Affairs Council

The Economic and Financial Affairs Council (ECOFIN) is one of the oldest configurations of the Council of the European Union and is composed of the economics and finance ministers of the 28 European Union member states, as well as Budget Ministers when budgetary issues are discussed.

ECOFIN often works with the European Commissioner for Economic and Financial Affairs and the President of the European Central Bank.

European Policy Centre

The European Policy Centre (EPC) is a Brussels-based not-for-profit think tank on European Union affairs, founded in 1997.

Forbes list of The World's Most Powerful People

Since 2009, the business magazine, Forbes had compiled an annual list of the world's most powerful people. The list has one slot for every 100 million people, meaning in 2009 there were 67 people on the list and by 2018 there were 75. Slots are allocated based on the amount of human and financial resources that they have sway over, as well as their influence on world events.

Heerenveen

Heerenveen (Dutch pronunciation: [ˌɦeːrə(n)ˈveːn] (listen), West Frisian: It Hearrenfean [ət ˌjɛrn̩ˈfɪən] (listen)) is a town and municipality in the province of Friesland (Fryslan), in the north of the Netherlands. The town has gained international prominence in speed skating, for it has the fastest lowland speed skating rink in the world.

Jean-Claude Trichet

Jean-Claude Trichet (French: [ʒɑ̃ klod tʁiʃɛ]; born 20 December 1942) is a French economist who served as President of the European Central Bank from 2003 to 2011. Previous to his assumption of the presidency he served as Governor of the Bank of France from 1993 to 2003 under presidents François Mitterrand and Jacques Chirac.

After stepping down from the European Central Bank, Trichet has taken speaking arrangements across France and served on the Board of Directors of the Bank for International Settlements. He was asked to join the non-doctrinal think tank, Bruegel, to consult on economic policy. In 2008, Trichet ranked fifth on Newsweek’s list of the world's most powerful along with economic triumvirs Ben Bernanke (fourth) and Masaaki Shirakawa (sixth).

List of people associated with the eurozone crisis

This is a list of people associated with the eurozone crisis.

Lucas Papademos

Lucas Demetrios Papademos (Greek: Λουκάς Παπαδήμος; born 11 October 1947) is a Greek economist who served as Prime Minister of Greece from November 2011 to May 2012, leading a provisional government in the wake of the Greek debt crisis. He previously served as Vice President of the European Central Bank from 2002 to 2010 and Governor of the Bank of Greece from 1994 to 2002.

He was a Visiting Professor of Public Policy at the Kennedy School of Government at Harvard University and is a Senior Fellow at the Center for Financial Studies at the University of Frankfurt.

Mario Draghi

Mario Draghi (Italian pronunciation: [ˈmaːrjo ˈdraːɡi]; born 3 September 1947) is an Italian economist serving as the President of the European Central Bank since 2011. He previously served as the Chairman of the Financial Stability Board from 2009 to 2011 and Governor of the Bank of Italy from 2005 to 2011.

Draghi previously worked at Goldman Sachs from 2002 until 2005. In 2014, Draghi was listed as the 8th most powerful person in the world by Forbes. In 2015, Fortune magazine ranked him as the world's second greatest leader. His term is scheduled to end on 31 October 2019.

Paul Tucker (banker)

Sir Paul Tucker (born 24 March 1958) is a British economist and central banker. He was formerly the Deputy Governor of the Bank of England, with responsibility for financial stability, and served on the Bank's Monetary Policy Committee from June 2002 until October 2013 and its interim and then full Financial Policy Committee from June 2011. In November 2012 he was turned down for the position of governor in favour of Mark Carney. In June 2013, Tucker announced that he would leave the Bank of England, and later that he would be moving to Harvard. He was knighted in the 2014 New Year Honours for services to central banking.Since late 2013, Tucker has been a Fellow at the Harvard Kennedy School’s Mossavar-Rahmani Center for Business and Government. He is a Senior Fellow at Harvard's Center for European Studies.Tucker's book, Unelected Power: The Quest for Legitimacy in Central Banking and the Regulatory State, was published in May 2018 by Princeton University Press.Tucker was educated at Codsall High School, Wolverhampton, and graduated from Trinity College, Cambridge, where he studied maths and philosophy. He joined the Bank of England very shortly afterwards, in 1980.From 1980-1989 Tucker worked in banking supervision; in corporate finance at a merchant bank; on reforming Hong Kong following the 1987 crash, and then the UK's wholesale payments system, leading to the introduction of real-time gross settlement. He was Principal Private Secretary to Leigh-Pemberton, BOE Governor, for nearly four years until 1993. He became Head of Gilt-Edged & Money Markets Division in mid-1994, during a period of reforms in the money markets. He was Head of Monetary Assessment and Strategy Division 1997-1998, responsible for assessing UK monetary conditions and issues concerning the monetary framework. From January 1999, he was Deputy Director of Financial Stability, and was closely involved with the Bank's Financial Stability Review. From 1997 to 2002, he was also on the Secretariat of the Monetary Policy Committee, preparing the published minutes. Starting in June 2002, he was Executive Director for Markets, with responsibility for (i) the Bank's implementation of monetary policy and the management of its balance sheet more generally, including management of UK's foreign currency reserves; and (ii) for market intelligence and analysis supporting the Bank's monetary and financial stability core purposes.He was appointed a member of the Bank of England’s Monetary Policy Committee and Executive Director for Markets from June 2002; and as Deputy Governor of the Bank of England with effect from March 2009.While Deputy Governor, Tucker became a director of the Bank for International Settlements, and later also chaired the Basel Committee on Payment and Settlement Systems (CPSS). During this period, he was a member of the Steering Committee of the G20 Financial Stability Board ("FSB").

In 2009 Tucker became the first chair of the FSB's Working Group on Cross-Border Crisis Management. According to the British Bankers Association, Tucker was “one of the first to set out thinking on ways to deepen the resolution regime”, in particular to develop "a super special resolution framework that permitted the authorities, on a rapid timetable, to haircut uninsured creditors in a going concern”. Tucker helped to develop the conceptual architecture of bail-in, and also got the FSB and G-20 behind the proposal. In October 2011, the FSB Working Group published the "Key Attributes of Effective Resolution Regimes for Financial Institutions". This document set out core principles to be adopted by all participating jurisdictions, including the legal and operational capability for such a super special resolution regime (now known as 'bail-in').. In late 2012, Tucker co-authored an op-ed with FDIC Chairman Martin Gruenberg that described how different countries should cooperate on the resolution of a cross-border bank.A July 2012 memo submitted to the Treasury Select Committee and released by the Wall Street Journal suggested that Tucker may have implicitly pressured Barclays to manipulate its Libor submissions by relaying a message from senior members of the UK government that "it did not always need to be the case that [Barclays] appeared as high as [Barclays] has recently." The memo also noted that Diamond did not believe he received an instruction from Tucker. In August 2012, the Treasury Select Committee noted in its report into Libor that the conclusion of the Financial Services Authority was that "no instruction for Barclays to lower its LIBOR submissions was given during this telephone conversation", but that "as the substance of the telephone conversation was relayed down the chain of command at Barclays, a misunderstanding or miscommunication occurred" so that "Barclays' Submitters believed mistakenly that they were operating under an instruction from the Bank of England". The U.S. Department of Justice and the U.S. Commodity Futures Trading Commission also came to similar conclusions following their investigations.In December 2015, Tucker became chair of the Systemic Risk Council, a body set up in 2012 by former regulators and central bankers to promote financial stability. Its first chair was Sheila Bair, former Chair of the FDIC, and its members include Paul Volcker (former Chair of the Federal Reserve) and Jean-Claude Trichet (former President of the European Central Bank). Since Tucker became chair, the SRC has issued a statement to G20 Finance Ministers and Governors on financial reform and, among other things, intervened on various US Treasury proposals to roll back financial regulation.Following the 2016 referendum on European Union membership in the United Kingdom, Tucker co-authored a paper with Jean Pisani-Ferry, André Sapir, Norbert Rottgen and Guntram Wolff which lays out a proposal of a “continental partnership” between the EU and the UK. According to the paper, such a partnership would grant Britain some control over labor mobility while preserving free movement of capital, goods and services In November 2018, Tucker was elected President of the UK’s National Institute of Economic and Social Research.

Pieter Duisenberg

Pieter Jacob Duisenberg (born 2 June 1967) is an American–born Dutch politician of the People's Party for Freedom and Democracy (VVD).

He was a Member of the House of Representatives between 20 September 2012 and 7 September 2017. He resigned to become chairperson of the Vereniging van Universiteiten per 1 October 2017.

SuomiAreena

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SuomiAreena is held in July, simultaneously with Pori Jazz which is one of the largest jazz festivals in Europe. 2013 SuomiAreena consists of 125 events and more than 600 debaters and speakers. The events take place in different locations around the city. They are held in cafés, restaurants, parks, theaters, outdoor stages and other suitable places. Topics of the panel discussions are related with various subjects like politics, society, economics, culture and religion.

Along with Finnish activists, politicians and other influential people SuomiAreena has a large number of international participants. Most notable international guests have been the President of the European Commission José Manuel Barroso (2006), president of the European Central Bank Jean-Claude Trichet (2007), Director General of the Al Jazeera Network Wadah Khanfar (2009), Secretary-General of the United Nations Ban Ki-moon (2011) and Nobel Peace Laureate Tawakkol Karman (2012).

University of Groningen

The University of Groningen (abbreviated as UG; Dutch: Rijksuniversiteit Groningen, abbreviated as RUG) is a public research university in the city of Groningen in the Netherlands. The university was founded in 1614. Since its founding more than 200,000 students have graduated.

In April 2013, according to the results of the International Student Barometer, the University of Groningen, for the third time in a row, was voted the best university of the Netherlands. In 2014 the university celebrated its 400th anniversary. The university was ranked 59th in the world, according to Academic Ranking of World Universities (ARWU) in 2017.The University of Groningen has eleven faculties, nine graduate schools, 27 research centres and institutes, and more than 175 degree programmes. The university's alumni and faculty include four Nobel Prize winners, five Spinoza Prize winners, multiple mayors, Aletta Jacobs, Johann Bernoulli, royalty, the first president of the European Central Bank and a secretary general of NATO.

Vision for Europe Award

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The first Vision for Europe Award was given to Jacques Santer in 1995, the year he left his position as Prime Minister of Luxembourg to become President of the European Commission. The award honored his efforts to unite Europe into a single entity.

Vítor Constâncio

Vítor Manuel Ribeiro Constâncio, GCC, GCIH (born 12 October 1943) is a Portuguese economist who has served as Vice President of the European Central Bank from June 2010 until May 2018. He served as Governor of the Bank of Portugal from 2000 to 2010.

Constâncio graduated in economics from the Universidade Técnica de Lisboa, and obtained a master at the University of Bristol.

Since June 2018 he is a professor at the School of Economics & Business Administration of the University of Navarra.[1]

Wim Duisenberg

Willem Frederik "Wim" Duisenberg (Dutch pronunciation: [ˈʋɪləm ˈfreːdərɪk ʋɪm ˈdœysə(m)bɛr(ə)x] (listen); 9 July 1935 – 31 July 2005) was a Dutch Labour Party politician who served as the first President of the European Central Bank from 1998 to 2003. He also served as President of the European Monetary Institute from 1997 to 1998, President of the Central Bank of the Netherlands from 1982 to 1997, and Minister of Finance from 1973 to 1977. He was elected to the House of Representatives from 1977 to 1978.

Duisenberg, an economist by occupation, worked for the International Monetary Fund and the Central Bank of the Netherlands from 1966 until 1970. Duisenberg became a professor of Macroeconomics at the University of Amsterdam in 1970. After the Dutch general election of 1972 Duisenberg was asked by the Labour Party (PvdA) to become Minister of Finance in the Cabinet Den Uyl under Prime Minister Joop den Uyl. Duisenberg accepted and resigned as a professor the day the Cabinet Den Uyl was installed on 11 May 1973. Duisenberg remained Minister of Finance until the Cabinet Van Agt I was installed on 19 December 1977. He was elected as a Member of the House of Representatives after Dutch general election of 1977, serving from 8 June 1977 until 8 September 1977 and from 16 January 1978 until 28 June 1978.

After his secretaryship, Duisenberg worked for the Central Bank of the Netherlands from 1 August 1978 until 1 January 1982 when he became the President of the Central Bank of the Netherlands serving until 1 July 1997 when he became the President of the European Monetary Institute which later became the European Central Bank (ECB). Duisenberg served as the first President of the European Central Bank from 1 July 1998 until 1 November 2003. He was instrumental in the introduction of the euro in the European Union in 2002.

Duisenberg retired from active politics at the age of sixty-eight. Following the end of his active political career, Duisenberg occupied numerous seats on supervisory boards in the business and industry world and international non-governmental organizations (Air France–KLM, Rabobank, Rijksmuseum and the Bilderberg Group).Duisenberg was known for his distinct Frisian accent and his abilities as an acclaimed financier and renowned economist were greatly admired.

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