Koehandel tussen grote landen over ECB-post die aanvankelijk beloofd was aan België of Ierland (en)

EUOBSERVER / BRUSSELS - Finance ministers from the 12 euro zone countries today appointed Spaniard Jose Manual Gonzalez Paramo to the governing council of the European Central Bank (ECB).

Mr Paramo will replace compatriot Eugenio Domingo Solans on the six member board but his appointment turned out to be a political hot potato and was only made after lengthy horse-trading and conflict between big and small countries.

The Spanish candidate was heavily backed by Germany, France and Italy.

Belgian National Bank Director Peter Praet - regarded by many as the best qualified for the job - and Irishman Michael Tutty were also in the running for the post.

The appointment is coveted because member states with a representative on the executive board have two votes on how interest rates in the 12-country euro zone develop.

Diplomatic horse trading

Mr Paramo's selection has been the subject of some classic EU horse-trading.

His appointment was complicated by the need also to appoint someone as head of the International Monetary Fund (IMF) after the surprise resignation of Horst Köhler to run for German President.

The Managing Director of the IMF is traditionally a European and many analysts expected Rodrigo Rato - a former Spanish finance minister - to clinch the post.

However, Spain is very unlikely to be granted both the IMF and ECB positions so France has been pushing the President of the European Bank for Reconstruction and Development (EBRD), a Frenchman called Jean Lemierre, for the IMF job.

With a Spaniard now installed at the ECB, Mr Rato could be less likely to get the post, which may leave the field open for the French candidate.

But the French may not have it all their own way. Italian prime minister Silvio Berlusconi was busy promoting his candidate for the IMF post today, saying "we have our own exceptional Italian candidate", according to Bloomberg.

And the French may find it difficult to win another high-profile finance position after the recent appointment of Jean-Claude Trichet as ECB President.

Mr Rato himself, however, denied that the selection was a result of horse-trading. He said that Mr Paramo had been chosen "for reasons of his personal qualities from the academic and monetary policy point of view".

But he admitted that it would be "satisfying" to have a Spaniard in the post.