Colm McCarthy: 'We'll all pay the price if the ECB's leader isn't picked for professional competence'

The role of European Central Bank president is too important to be decided simply by politics and nationality, writes Colm McCarthy

Mario Draghi's time as president of the European Central Bank is coming to an end. Photo: REUTERS/Ints Kalnins

On Thursday, June 20, the European Council convenes in Brussels for its quarterly two-day meeting, the first since the European Parliament elections. The main business will be the choice of new presidents for the European Council itself, to replace Donald Tusk, for the European Commission to replace Jean-Claude Juncker and for the European Central Bank, where Mario Draghi's term of office is also ending.

The succession to Draghi is important for the 19 countries in the eurozone, especially for those likely to be most exposed to ECB policies. This category includes Ireland, given the high debt level and the unfortunate experience in 2010 and 2011 at the hands of Draghi's predecessor Jean-Claude Trichet. In the chaotic conditions of the financial crisis, the ECB filled a policy vacuum in securing the survival of the common currency area and particularly in the oversight of rescue programmes in Greece, Ireland, Portugal and Cyprus. The eurozone had not been designed as a full monetary union and the crisis exposed design flaws, including a policy role in programme countries for the new central bank which had not been foreseen.