EU leaders choose France’s Lagarde for ECB after marathon summit

BRUSSELS/STRASBOURG (Reuters) – European Union leaders agreed on Tuesday to call France’s Christine Lagarde as the brand new head of the European Central Bank and sealed a deal on filling the EU’s different prime 4 jobs after marathon talks which have uncovered deep divisions within the bloc.

Three days of summit negotiations that at instances regarded near collapse ended with a deal that now have to be authorised by the European Parliament and was instantly rejected by the socialist and inexperienced bloc within the meeting in Strasbourg.

“Done!” mentioned Luxembourg’s Prime Minister Xavier Bettel, who was first to interrupt the information on Twitter that leaders had lastly clinched a deal.

Leaders hope the choice to appoint two ladies, Lagarde and German Defence Minister Ursula von der Leyen, to the highest of EU decision-making for the primary time will ship a optimistic message and restore injury wrought by such a fractious summit, diplomats mentioned.

The discord echoed a wider fracturing of the EU’s political heart that was evident in May’s European Parliament elections that delivered a extra fragmented meeting through which no bloc gained a majority and far-right and far-left teams carried out strongly.

Under the deal, von der Leyen, an in depth ally of German Chancellor Angela Merkel, will change Jean-Claude Juncker as president of the European Commission, the EU’s govt arm.

“After all, Europe is a woman,” Donald Tusk, the outgoing chair of EU summits, informed reporters, referring to the traditional Greek legendary determine of Europa who gave her identify to the continent.

Lagarde, as soon as France’s first lady finance minister and since 2011 head of the International Monetary Fund (IMF), is a powerful advocate of feminine empowerment, though she has no direct, lively financial coverage expertise.

The greatest process for Lagarde, who had beforehand denied any curiosity in an EU job, shall be to revive the euro zone economic system.

“Christine Lagarde will … be a perfect president of the European Central Bank,” Tusk mentioned. “I am absolutely sure that she will be a very independent president …”

Von der Leyen, if authorised, would run the highly effective Commission, which supervises EU states’ budgets, acts because the bloc’s competitors watchdog and conducts commerce negotiations with exterior international locations. Her presidency would form coverage for the world’s greatest commerce bloc and its 500 million folks.

She as soon as had a repute as a flawless politician, however Brussels-born Von der Leyen has had a scandal-prone run as German defence minister, primarily over right-wing extremism within the armed forces, gaps in army readiness, and the awarding of arms contracts.


The deal adopted a tortuous summit that had leaders nodding off and their police escorts slumped on chairs as teams of leaders huddled looking for an accord.

With a weakened Merkel going through a rise up by her center-right European People’s Party (EPP) early on within the summit, efforts to push by means of a deal pre-agreed with French President Emmanuel Macron met stiff resistance from Italy, Poland and others.

They scuppered a plan to put in former Dutch overseas minister Frans Timmermans as Commission president.

FILE PHOTO: International Monetary Fund Managing Director Christine Lagarde arrives for the Women’s Forum Americas, at Claustro de Sor Juana University in Mexico City, Mexico, May 30, 2019. REUTERS/Carlos Jasso/File Photo

It was a transparent reminder of the dangers the EU faces from populists who officers accuse of making an attempt to weaken the bloc’s democratic foundations because it struggles with Brexit and challenges posed by Russia, China, Iran and Donald Trump’s United States.

Timmermans, who led the Socialists’ European Parliament election marketing campaign in May and whose identify Macron and Merkel had agreed on at a G20 summit in Japan final week, was the largest casualty of some 30 hours of negotiations.

In different selections on Tuesday, Spain’s appearing overseas minister, Josep Borrell, a socialist, was nominated because the EU’s new prime diplomat in Brussels.

Macron and Spanish Prime Minister Pedro Sanchez, who had pushed arduous for Timmermans, additionally secured the election of Belgium’s liberal caretaker prime minister, Charles Michel, to switch Tusk as chair of EU summits. In that function as European Council president, Michel shall be have the job of constructing compromises between the 28 member states.

Timmermans and Margrethe Vestager, the lead candidate for the liberals in May’s parliament election, had been put ahead as deputies beneath von der Leyen within the subsequent Commission, which takes workplace on November 1.


Von der Leyen, Timmermans and Vestager will all assist lead the EU’s insurance policies over the subsequent 5 years on every part from local weather to migration to commerce.

The fifth distinguished EU function up for grabs is the president of the European Parliament. Lawmakers are as a consequence of choose that individual in Strasbourg on Wednesday.

The socialists selected as their candidate Italian lawmaker David Sassoli, making him the strongest contender for the presidency of the parliament, as he additionally has the help of the center-right grouping, the biggest within the chamber, and the liberals.

Slideshow (7 Images)

But the poll shall be secret and a few teams’ members might vote alongside nationwide strains. A Bulgarian candidate for parliament president, Sergei Stanishev, was supported by EU leaders however ultimately was rejected by most conservative and socialist lawmakers, in opposition to the need of deputies from jap European international locations.

A easy election of the EU parliament president is seen as helpful to paving the way in which for the endorsement by the chamber of the brand new fee’s president in a vote anticipated within the second half of July.

Reporting by Andreas Rinke, Peter Maushagen, Alexandra Regida, Jean-Baptiste Vey, Richard Lough, Gabriela Baczynska, Alissa de Carbonnel, Belen Carreno in Brussels, Jan Lopatka in Prague, Alan Charlish and Agnieszka Barteczko in Warsaw, Francesco Guarascio in Strasbourg; Editing by Kevin Liffey, Gareth Jones, Frances Kerry and Jonathan Oatis

Our Standards:The Thomson Reuters Trust Principles.

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