SPAIN'S economy minister Luis de Guindos has been put forward for the job of deputy chairman of the Central European Bank (BCE) to replace Portugal's Vítor Constáncio whose turn in the role ends on May 31.
But De Guindos, 58, will not resign yet from his post in the Spanish government until he knows the results of the bank's decision on March 23.
He only has one rival for the job – governor of the Central Bank of Ireland, Philip Lane.
Both will have to go through a serious of closed-door interviews next Wednesday, February 14 in the Commission for Economy in European Parliament, then the 'winner' will be informally chosen five days later and confirmed on Tuesday, February 20.
The decision will not be formally set in stone until the Summit of March 22 and 23.
Mariano Rajoy's government recommended De Guindos for the job, and he is in with a good chance – he needs to have the approval of at least 14 of the European Union's 28 member States representing at least 65% of the EU population, which looks likely and, as Rajoy's cabinet recalls, the bloc has a 'representation debt' with Spain.
Ever since the Spanish deputy chair of the European Commission left, Spain has had no positions of reponsibility or leadership within the EU, despite being the fourth-largest economy in the Eurozone.
De Guindos had tried for EU president in 2015, without success, and attempts by Belén Romana and Antonio Sáinz de Vicuña to get the jobs of MEDE Director-General and on the BCE Council failed in 2012.
“Spain's going to win this,” said a supremely-confident Luis de Guindos, who is already backed by France and Germany.
“Both president Rajoy and I have gained sufficient support to achieve a qualified majority and there's a very real possibility of Spain's candidature being successful.”
He could face dissent in European Parliament, given that he is a minister, meaning he is not politically neutral, has no background in monetary policy or in the BCE Council, and is a man in a bloc where women remain under-represented in key roles.
But MEPs will not get the last word – nor will the BCE itself – as the decision will be made by the 28 heads of State who make up the European Council.
De Guindos has, however, confirmed that if he gets the job, he will immediately resign as economy minister.
Speculation is now rife as to whom Rajoy will choose as a replacement to head up one of the most onerous areas of policy in a country still climbing out of recession and fighting to meet its EU deficit targets.
But De Guindos evaded the question as to the identity of his successor, saying: “The president will pick the right person for the job.”
Even if De Guindos is successful, he will not start work at the BCE until June 1, the day after Vítor Constáncio leaves.
He will be in the position for eight years, which cannot be renewed or prolonged, and will earn a gross annual salary of €320,688 – five times his current before-tax earnings of €73,650 a year.
Left-wing parties Podemos and the PSOE have criticised De Guindos' candidature as he is male, but De Guindos says that although he agrees about equal representation, it is not crucial just yet for the BCE job to be limited to female applicants only.
“There are five key roles occupied by men in the BCE who will have to be replaced in the next two years,” De Guindos explains.
“Although there's only one female BCE councillor – nominated by Germany – by the time all five are replaced, there'll be more of a gender balance.”
Unlike his rival Philip Lane, De Guindos has no experience in monetary affairs, despite his otherwise glowing career – he was Secretary of State for the economy under right-wing PP president José María Aznar, who governed Spain from 1996 to 2004; head of finance at PriceWaterhouseCooper (PwC), and chairman of Lehman Brothers for Spain and Portugal at the time the recession started and the firm went bankrupt.
“What's important, though, is that the chosen candidate is committed to the BCE's independence; but its inner workings already guarantee that and I've always been in favour of it,” De Guindos argued when it was suggested his experience was too political and not technical enough.
