REPEAT: MNI: Spain Aims For Prize Of ECB Vice-Presidency

--Madrid Believes It Should Be In Line To Fill Constancio Role

--Economy Minister De Guindos Believed To Be Spain's Preferred Candidate

by Jean Comte

     BRUSSELS (MNI) - Spain is hoping to fill the seat of the Vitor Constancio,

currently European Central Bank Vice-President, when his term ends on May 31

2018, a source from the Spanish Economy ministry told Market News.

Madrid wants to restore an unwritten rule on ECB appointments that sees one

member from each of the four largest EU economy -- Spain, Germany, France, Italy

-- hold one of the 6 seats of the ECB Executive Board. 

     "The four largest EU economy usually have a seat at the executive board -

as largest contributors to the ECB capital key. The departure of V Constancio is

the right opportunity to restore this balance," the Spanish official said.

     The non-binding 'rule' was broken in Spring 2012, when outgoing Spanish

Executive Board member Jose Manuel Gonzalez-Paramo was replaced by Luxembourg's

Yves Mersch.

     "That broke a gentleman's agreement," Spain's economy minister told

reporters last December.

Madrid has not officially decided who the preferred candidate for the position

is, but the scuttlebutt in Brussels suggests the economy minister Luis de

Guindos is aiming for the job.

The rumour appears to stem from the fact that de Guindos has ruled himself out

as a candidate Eurogroup presidency election, despite being Jeroen

Dijsselbloem's only contender back in June 2015.

The process to select a new Eurogroup president started last week. Finance

ministers who wish to fill the position have until the end of this month to

apply, and the election will take place at the 4th of December meeting.

--South/North balance 

A Spanish ECB vice-president could leave the way open for a possible German

take-over of the Presidency, at least in terms of 'North/South' balance. Berlin

is said to pushing for Bundesbank President Jens Weidmann to replace Mario

Draghi, whose term ends in a little under two years time.

That could shift the whole executive board toward a more hawkish stance, an EU

diplomat told MNI -- as Guindos is said to be a right-wing politician closer to

the hawks, with Germany also firmly in the hawks camp.

     The ECB appointment must be decided by EMU heads of state and confirmed by

the EU Parliament. An EU official with good knowledge of Eurogroup working

methods told MNI that the finance ministers will hold a first discussion in

January 2018. But at this point, they will only focus on the "procedure" leading

to the appointment of the vice-president, not on the possible names, the source

added.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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