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Viewing cable 03FRANKFURT5345, ECB's Next President Trichet: No Obstacles

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Reference ID Created Released Classification Origin
03FRANKFURT5345 2003-07-01 08:38 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Frankfurt
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS FRANKFURT 005345 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EUR PDAS RIES, EB BAY, EUR/AGS, AND EUR/ERA 
STATE PASS FEDERAL RESERVE BOARD 
STATE PASS NSC 
TREASURY FOR DAS SOBEL 
TREASURY ALSO FOR IMI HARLOW, AUSTIN 
PARIS ALSO FOR OECD 
TREASURY FOR OCC RUTLEDGE, MCMAHON 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EUN
SUBJECT: ECB's Next President Trichet:  No Obstacles 
Foreseen 
 
 
T-IA-F-03-36 
 
This cable is sensitive but unclassified.  Not/not 
for Internet distribution. 
 
1. (SBU)  Summary:  European Central Bank (ECB) senior 
officials do not foresee any obstacles to Jean-Claude 
Trichet becoming the next President of the European 
Central Bank.  Finance Ministers are scheduled to make 
their official recommendation at the Ecofin meeting on 
July 15.  The ECB Governing Council and Parliament will 
then be consulted and give their opinions.  Final 
approval by heads of state should take place at the 
European Council on October 16-17.  Trichet is expected 
to be in office by the end of October, early November. 
End Summary 
 
Thessaloniki Council Jumps the Gun 
 
2. (SBU)  The Presidency's conclusions of European 
Council meeting of June 19-20 in Thessaloniki  states 
that the Heads of State or Government "have decided on 
the candidacy of Jean-Claude Trichet for the presidency 
of the European Central Bank."  They went on to "invite 
the Council (ECOFIN)," at its next session, to initiate 
the necessary procedures under the Treaty. 
 
3. (SBU)  While this was a clear political signal, a 
senior ECB official points out that the Council got a 
bit ahead of itself.  Under the Treaty the ECOFIN has 
the responsibility to take the initiative for 
recommending a new ECB president.  The Council's 
conclusions have no binding effect. 
 
Appointment Process and Schedule 
 
4. (SBU)  According to the ECB official, at the July 15 
Ecofin meeting Finance Ministers should make their 
recommendation for Trichet to become the next ECB 
President.  Under Article 11 of the ECB's statutes, 
before this recommendation goes to the Heads of State 
or Government for a decision, the Governing Council of 
the ECB and the European Parliament have to be 
consulted.  Both issue non-binding opinions. 
 
5. (SBU) There had been some discussion that the 
Economic and Monetary Affairs Committee (EMAC) of the 
Parliament would hold a special hearing in July, 
according to the ECB official.  However, he reports 
that EMAC decided that no special session was necessary 
and will hold its hearing in the second half of 
September (Note: EMAC has sessions scheduled for 
September 10 and 30).  The hearing will afford an 
opportunity for committee members to pose questions to 
Trichet. 
 
6. (SBU) Given the timing of the anticipated Ecofin 
recommendation and the EMAC hearing, the Governing 
Council of the ECB would render its opinion either at 
its meeting on July 31 or its August 21 session.  Heads 
of State or Government at the October 16-17 European 
Council meeting could then give their formal 
endorsement. 
 
7. (SBU)  According to this ECB official, Trichet 
should be able to be in the ECB's President's office in 
late October, early November.  He said, "No obstacles 
are foreseen in this process." 
 
8. (U)  This cable was coordinated with US Embassy 
Berlin and USEU. 
 
(U) POC: James Wallar, Treasury Representative, e-mail 
wallarjg2@state.gov; tel. 49-(69)-7535-2431, fax 49- 
(69)-7535-2238. 
 
BODDE