Monday 22 October 2018

Did Ireland take the wrong ECB route by picking Lane?

Central bank deputy Sharon Donnery
Central bank deputy Sharon Donnery
Samantha McCaughren

Samantha McCaughren

Did Ireland miss a trick by not nominating Central Bank deputy governor Sharon Donnery for the role of European Central Bank vice-president?

Both Donnery and her boss, governor Philip Lane, topped Ireland's list of nominees for our first ever seat on the executive board, with Lane ultimately getting the official nod.

Last week Lane emerged as ECON's preferred candidate, after the parliamentary committee received presentations from Lane and Spain's Economy Minister, Luis de Guindos. Spain, the currency bloc's fourth-largest economy, is fighting hard to regain the board seat it lost six years ago. And de Guindos is a shoo-in as Spain has the backing of major euro-area countries, which we don't.

Lane succeeds even if he fails to secure the vice-presidency as he is the frontrunner for the soon to be vacant role of ECB chief economist. However, the coronation of de Guindos exacerbates the ECB's gender crisis, which will come into even further sharp focus if Lane becomes ECB chief economist.

ECON excoriated the lack of women on the executive board and the lack of female candidates put forward. Donnery, arguably, could have squared the gender circle had she been nominated instead of Lane whose departure paves the way for the possibility of the first ever female governor of the Central Bank, a feat that will be challenged by certain men - and women - waiting in the wings.

Sunday Indo Business

Business Newsletter

Read the leading stories from the world of Business.

Also in Business