The success of the ECB’s Sharon Donnery can be an obstacle for ground-based

  • The success of the ECB’s Sharon Donnery can be an obstacle for ground-based
    Independent.t. E.
    Seemingly good news for Europe when Sharon Donnery, Deputy Governor of the Irish Central Bank, has applied to be at the top of Bank supervision the European Central Bank.
    https://www.independent.ie/business/irish/sharon-donnerys-ecb-success-could-be-a-setback-for-the-centre-ground-37268686.html

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Seemingly good news for Europe when Sharon Donnery, Deputy Governor of the Irish Central Bank, has applied to be at the top of Bank supervision the European Central Bank.

She is widely regarded as extremely competent, has experience in important areas such as non-performing loans, and the woman in an institution that is in dire need of women in leadership positions.

But MS Donnery is not as straightforward as it may seem. Its purpose probably would have prevented her boss at the Central Bank of Ireland, Philip lane, next chief economist of the ECB, as had been widely predicted.

That’s an unwritten rule that no country-member of the European Union can hold two large EU project at the same time.

It will be a pity, since Mr. lane is widely considered the best economist of the ECB governing Council. He is a moderate who will go to the work and policy of the current President of the ECB, Mario Draghi, who will leave his post in October 2019.

This is extremely important at a time when populists who are trying to wrest Italy free from the EU, can use the policy tightening of the ECB to convince the Italians that the EU has a prejudice against them.

It is not clear who will replace Mr. Draghi, although last week the Chancellor of Germany Angela Merkel supposes that it would not be the hawkish head of the Bundesbank, Jens Weidmann, when she announced that Germany had its own candidate for EU Commission President, not the ECB leadership.

This raises the stakes for Germany, which enters the chief economist of the ECB post.

Chief economist have a surprisingly powerful influence on Central Bank policies controlling employee access to economic information, which serves as the basis for policy formulation and determining the agenda for the monthly Board meeting.

It was an open secret that Germany was willing to endure the Dutchman WIM Duisenberg, the first ECB President from 1998 to 2003, as he believes that a tough and strong-willed chief economist at the time of Otmar Issing, could control it. Mr. Issing has gone so far that sometimes refuse to take economic data, Mr. Duisenberg when the President asked him.

Realizing that Mr. lane could provide a similar strong influence on policy in the coming years, although weakening and no German in the TOP chair in Frankfurt, Berlin is now reported to be supporting MS Donnery for Bank supervisor position, arguing that it would be the best choice for cleaning huge bad loan problems in Italy.

This argument is not only disingenuous, but wrong. Best choice for cleaning from harmful problems of Italy, the loan will be Italian, not Irish and Irish.

The most compelling argument for the Italian banks to be supervised by one of their own, especially if bitter Medicine is necessary to enter as possible, this will help to resist populist pressure to pull Italy out of the Euro and the EU.

Having a competent Italian as well-regarded Andrea Enria, the current Chairman of the European banking supervision, and the Chairman of the Bank, the ECB supervision will make it harder to portray legitimate banking supervision as foreign interference in Italian banks.

Europe cannot afford to give the Italian populist push in order to block the appointment of Mr. lane as chief economist. MS Donnery will withdraw the ECB’s announcement and promotion at the current work of Mr. lane when he leaves in Frankfurt. (Bloomberg View)

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