MNI INTERVIEW: Next ECB VP Should Be Chosen On Merit - Centeno

The successor to European Central Bank Vice President Luis de Guindos should be named based on the merits of the candidate, one of the main contenders for the post told MNI, though Portugal’s Mario Centeno also noted that his country was underrepresented in key European financial institutions.

Much of the debate ahead of the VP appointment has considered it as part of a broader package including the likely identities of the next ECB president and chief economist, posts which will only become vacant next year, the former Bank of Portugal governor and Eurogroup president said in interview.

“The race has been shaping like that. It is understandable given the proximity of other vacancies, but it is still one year and a half away,” Centeno said, noting how ECB President Christine Lagarde’s term only concludes at the end of October 2027, while Chief Economist Philip Lane is due to step down at the end of May next year.

“I think what we need to consider right now is look at the merits of the candidates and their credentials. How can they contribute to the [ECB Governing Council] and the Executive Board? And of course we need to have in the board represented all perspectives around Europe.” 

SIX CONTENDERS

Centeno, who has a PhD in economics from Harvard, is one of six candidates for the VP role, including Latvia’s Martins Kazaks, Finland’s Olli Rehn and Croatia’s Boris Vujcic. The European Parliament has identified Centeno and Kazaks as its preferred candidates, but the decision on the appointment - expected soon -- will be made by the European Council.

While Portugal has already held the vice-presidency -- with Vítor Constancio serving from 2010 to 2018 -- Centeno said that that appointment was made 16 years ago and that Constancio was recognised to have done a good job.

Centeno noted the lack of Portuguese representation among the heads of organisms including the Single Resolution Board, EBA, EIOPA, ESMA and the European Stability Mechanism.

“When you look at the big picture, you will see that there is no bias in representation. You can say that Finland is a little bit overrepresented. But that is the only thing. Right now what we have is that Portugal is absent of all these boards,” he said.

Naming someone from outside southern Europe to the vice-presidency would also leave the region with only one representative on the executive board for the first time - Italy’s Piero Cipollone, Centeno said. (See MNI SOURCES: ECB Monitors Markets For Fed Independence Fallout)