Pierre Gramegna’s (DP) five-year term will begin on 1 December. He will take over the role from Christophe Frankel, who served as interim managing director after the term of Klaus Regling, the ESM’s first managing director, ended in October 2022.
“I warmly congratulate Pierre Gramegna on his appointment as the new managing director of this key institution in the European financial architecture,” said Luxembourg’s finance minister Yuriko Backes (DP). “In this period of polycrisis, I am convinced that as a dedicated European Pierre will bring all the qualities necessary to contribute to the stability and solidity of the euro zone thanks to his experience and his ability to federate.”
Pascal Donohoe, chairperson of the ESM board of governors, said, “I am certain that under [Gramegna’s] leadership, the ESM will continue to be the strong and dependable institution it has grown to become.”
Each country’s voting right is proportional to its capital in the ESM. Italy, who saw Gramegna as a representative of budgetary rigour, was initially hostile. In September 2022, Gramegna officially withdrew his candidacy for the position after failing to obtain 80% of the votes, as did the Portuguese candidate João Leão. Two months later, eurozone finance ministers voted unanimously to appoint Gramegna as managing director.
Headquartered in Luxembourg, the ESM is an intergovernmental organisation established by the countries in the euro zone in 2012. It has a lending capacity of €500bn and aims to help the euro area overcome crises and maintain financial stability and prosperity.