German Chancellor Angela Merkel is trying to stop Italian central banker Mario Draghi from becoming the next ECB president, according to Der Spiegel.
Merkel is plotting to send Draghi to the IMF to become Dominique Strauss-Kahn’s successor. Strauss-Kahn plans on quitting early, and running for the presidency of France.
French President Sarkozy has already expressed his support of Draghi. But while it’s unlikely to impact his position domestically, picking the Italian ex-Goldmanite Draghi to head to ECB could be extremely damaging for Merkel’s political position in Germany.
The only other candidate that has a bit of traction in Yves Mersch of Luxembourg, but he’s not received the public support of any major European players as of yet.
It remains likely that Merkel will eventually submit and accept Draghi. But this could put greater pressure on her from the right-wing elements of her party, forcing her to adopt more aggressive positions on issues like German veto power for the new European bailout program, the ESM.