Ireland confirms Philip Lane candidacy for ECB top role

Ireland has confirmed that it is putting forward its central bank governor, Philip Lane, as a candidate to become the European Central Bank’s next chief economist.

Mr Lane is the first declared candidate in a race that Ireland is widely expected to win for the prized post on the ECB’s six-person executive board. He would replace Peter Praet, whose eight-year term concludes at the end of May.

Irish finance minister Paschal Donohoe confirmed the candidacy as he arrived at a meeting of euro area finance ministers in Brussels that will kick off the nomination process. A decision on replacing Mr Praet is expected next month.

“Philip has done an exemplary job leading the Irish central bank,” Mr Donohoe said. “He’s demonstrated his credentials as a central banker of the first order.”

The minister refused to be drawn on whether Mr Lane is likely to race rival candidates for the job, with euro area diplomats convinced that he is a firm favourite to secure the role.

The replacement of Mr Praet is the first of three personnel changes on the ECB’s executive board this year, with the bank’s president, Mario Draghi, set to depart at the end of October.

“I think that, even if other good candidates come forward, I do believe Philip will be the best qualified,” Mr Donohoe said, adding that he sees the chief economist role as the best fitting job for Mr Lane at the ECB.

“This is the role that Philip is best qualified for,” he said.