The Finance minister of the Netherlands, Eelco Heinen, defended this Monday in Brussels that the designation of the next president of the European Central Bank (ECB), for which the Dutchman Klaas Knot and the Spaniard Pablo Hernández de Cos are competing, must be decided exclusively based on the merits of each candidate and not through exchanges of favors between European capitals.
"We have a very solid candidate. We will present him strictly based on his merits. Mr. Knot is also holding many meetings on his own. I am receiving positive comments about it, so let’s stick to the merits and to the quality of the person," he said to the media before entering the Eurogroup meeting.
Asked what the Netherlands could put on the table to garner support for Knot ahead of a potential decision in December, Heinen ruled out getting into "political horse-trading" and reiterated that the discussion must revolve around the qualities of the candidates.
"Let’s simply look at the content. He is an excellent candidate and that is precisely what the ECB needs now," emphasized the Finance minister.
Regarding the possibility that The Hague would ease its austerity requirements in the next Multiannual Financial Framework (MFF, for its English acronym) to win support for its applicant, Heinen rejected linking the two files and warned that "when files are tied together, everything becomes infinitely complex."
He did, however, acknowledge that there are other positions to be filled in the EU institutions and that, when distributing them, "the overall balance is always taken into account," while specifying that these negotiations must be confined to the appointments and not be contaminated with other political dossiers.
In addition, the Dutch minister called for avoiding a situation in which the contest for the ECB presidency turns into a clash between northern and southern countries, given the risk that Knot could be seen as an especially tough profile in monetary policy.
"There are simply two good candidates. I, of course, consider that Klaas is the best," Heinen said, who refused to directly set the two candidates against each other and again insisted that the criterion must be his experience and abilities.
Along these lines, he highlighted Knot’s "impressive curriculum vitae," his national and international track record, and his role in crisis management, including that of the euro, as well as his knowledge of the ECB mandate.
Heinen described the options of the Dutch candidate as "good", although he admitted that "you never know how things turn out in Brussels."
European leaders will decide the replacement at the ECB
On the other hand, Eurogroup president Kyriakos Pierrakakis explained that this Monday’s meeting will mainly serve to present the two candidacies and set the selection procedure, with no expectation of an immediate decision, since traditionally it is heads of State and Government who steer these negotiations.
"It is a political process based on consensus," Pierrakakis recalled, who said that Christine Lagarde’s term ends next February 7 and defended the advisability of moving quickly to close the replacement before the end of the year.
The Eurogroup president also admitted that the coincidence of three vacancies at the ECB constitutes a "fairly unprecedented" situation that has opened the door to debating whether it is advisable to negotiate appointments "as a package", a formula that could "make things easier", although he insisted that the final word will rest with the European leaders.
Along the same lines, Irish Finance Minister Simon Harris pointed to December as a possible time horizon for completing the election and noted that, given the various vacancies open, the Twenty-Seven will have to assess how to "fit the pieces of the puzzle" in a way that reflects European interest.
"We are in a truly crucial moment, with enormous uncertainty in the global economy and some pressures on the European economy. Undoubtedly, it makes sense to fill the vacancy as soon as possible," he added.
The body highlights the merits of Hernández de Cos
For his part, first vice president and Minister of Economy, Trade and Enterprise, Carlos Cuerpo, showed himself to be "optimistic" regarding the options of Hernández de Cos, whom he considers a "perfect" candidate to head the ECB due to his nearly 30 years of track record, his "enormous reputation" and his ability to "build consensus in complex environments."
Like his Dutch counterpart, he avoided getting into comparisons between the two contenders and argued that the former Governor of the Bank of Spain has "sufficient merits on his own" to assume the institution’s presidency.