It is a cold shower for Luxembourg and its former finance minister (DP), who will not be the next managing director of the European Stability Mechanism, the eurozone’s bailout agency. Luxembourg’s finance ministry announced on Tuesday the withdrawal of his candidacy, alongside that of his competitor, Portugual’s João Leão. This decision was taken “by mutual agreement in the interest of this institution, whose headquarters are in Luxembourg.”
Negotiations between eurozone finance ministers within the Eurogroup were unable to reach a positive outcome. Neither of the two candidates managed to obtain a qualified majority of 80% of the votes. The deadlock, even if the Eurogroup denies it, was total.
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“In order not to further hamper the succession of Klaus Regling, the current ESM managing director, both candidates have been withdrawn from the race as of today. The president of the Eurogroup and chairman of the governing council of the ESM, Paschal Donohoe, will inform in due course the next step in the process”, the ministry’s press release stated.
A decision is urgent, as Regling’s mandate expires on 7 October.
Gramegna left national politics at the end of 2021. During his time as finance minister, he failed twice in races for the presidency of the Eurogroup.
Originally published in French by and translated for Delano