Comuniq.EU

Germany hopes for breakthrough on new ESM head on Friday

cde.news desk 8 September 2022, 17:42 · 1 min read

epa06712491 European Union flags fly near the seat of the European Commission at the Berlaymont building in Brussels, Belgium, 05 May 2018. EU institutions in Brussels opened their doors to the public on 05 May to celebrate 'Europe Day'. EPA-EFE/JULIEN WARNAND

BERLIN, Sept 8 (Reuters) – The German government hopes that euro zone finance ministers will reach agreement on choosing a new head of the bloc’s bailout fund at a meeting in Prague on Friday, a German government source told Reuters on Thursday.

Euro zone finance ministers have for months failed to agree on a successor to Klaus Regling, who will retire in October after having steered the European Stability Mechanism (ESM) since its creation in 2012 during the euro zone debt crisis.

“I am hopeful that we will find a solution in Prague on Friday,” said the source.

EU finance ministers are meeting in the Czech capital on Friday and Saturday to discuss the looming recession as a result of the sharp rise in energy costs and further financing for Ukraine.

Luxembourg’s former finance minister Pierre Gramegna and Portugal’s former finance minister Joao Leao remain in the race to take charge of the ESM. German Finance Minister Christian Lindner has publicly backed Gramegna.

(Reporting by Christian Kraemer; writing by Matthias Williams)