October 22, 2011
At the end of October, after eight years in the top job, Jean-Claude Trichet will pass the presidency of the European Central Bank (ECB) to Mario Draghi. Italy’s leading central banker thus takes his place in the front row of the fight to push back the euro crisis, bearing every bit as heavy a responsibility as chancellors and presidents. Whatever plans Europe’s political leaders draw up at their summit on October 23rd, the ECB’s new head will be a vital part of their success—or failure.
Mr Draghi has much in common with the Frenchman he is following. Both have had long careers in public life, including stints at their finance ministries and heading their national central banks. As chairman of the Financial Stability Board, Mr Draghi has been leading international efforts to remedy the ills of global banking. Besides his strong credentials for the job, Mr Draghi shares with Mr Trichet a pragmatic streak, a desirable characteristic when confronting a challenge as grave as the euro crisis.
Not all of Mr Draghi’s background works in his favour. His brief excursion into the private sector, working at Goldman Sachs between 2002 and 2005, might in some circles be seen as betokening welcome breadth in a central banker, but it has made others suspicious that he might be overly lenient towards banks. And then there is the matter of his nationality. Nationality is not supposed to count at the supranational ECB; but it always does.
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