The Board of Governors of the European Stability Mechanism (ESM) failed today to choose Klaus Regling’s successor as ESM Managing Director and the vote has been postponed until September.
The new ESM CEO is expected to take office in October, when current CEO Klaus Regling’s second five-year term ends. However, for the third time it was not possible even today for white smoke to come out of the Board of Governors of the ESM.
As announced by the President of the Eurogroup, Pascal Donahue, one of the three candidates, the Italian Marco Buti, withdrew his candidacy before the voting began. However, neither of the two other candidates, neither former Luxembourg Finance Minister Pierre Gramenia nor Portugal’s former Finance Minister João Leão, managed to emerge victorious through the vote. “Both candidates are excellent and have a lot of support, but neither managed to reach 80% of the votes from the Board of Governors. We will therefore return to this issue in September,” said Pascal Donahue.
Outgoing ESM CEO Klaus Regling said he would continue in his role for another three months, expressing confidence that a solution would be found in September.
It is worth noting that in order to be appointed a candidate for the new managing director of the ESM, he should receive more than 80% of the votes in the ESM Board of Governors. Each eurozone country has a weighted vote according to its share of the bailout capital.