The latest name to be mentioned as a potential success for for ECB president Jean-Claude Trichet is that of Luxembourg’s central bank chief Yves Mersch.Since Germany’s Axel Weber dropped out of the running, there’s been no clear front runner, though Italian Mario Draghi has been heavily talked about.
The Germans may have a hard time with Draghi, however, because of Italy’s current quantity of political scandals, most notably Prime Minister Silvio Berlusconi’s sex scandal.
Now, a Bloomberg story, citing bankers at RBS and ex German Chancellor Gerhard Schroeder, suggests Mersch is becoming the consensus front runner for the job.
Mersch would make sense, as Germany may not even field a candidate, and being from Luxembourg, he’s unlikely to upset too many people. Mersch is considered a fiscal conservative with a lighter touch than Axel Weber.
Also notable: Mersch did gymnastics until he was 45.