Luxembourg Banker Named to E.C.B. Board

BRUSSELS — European Union leaders have appointed Yves Mersch of Luxembourg to the executive board of the European Central Bank despite opposition from some lawmakers who wanted a woman to fill the post.

Mr. Mersch, head of the Luxembourg central bank, will take his seat Dec. 15 for an eight-year term after a decision late Thursday at a summit meeting in Brussels, where European Union leaders were seeking to negotiate a long-term budget for the bloc.

Mr. Mersch, known for his hawkish stance on inflation and for views in line with those of German central bankers, was nominated by euro zone finance ministers in July to succeed José Manuel González-Páramo of Spain on the six-person board.

But the post had remained vacant amid a debate over diversity on the board, opposition from Spain and skepticism about some of Mr. Mersch’s views. The European Parliament rejected the nomination last month, saying it was fed up with having only men in top jobs at the central bank.

Even though the Parliament does not have the power to require that women be considered, its decision carried weight in a period of heightened concern about making European institutions more democratically accountable.

Spain then blocked the appointment of Mr. Mersch this month, saying it would have preferred a Spaniard in the post.

There have been no women on the board since 2011, when Gertrude Tumpel-Gugerell of Austria left her post at the end of an eight-year term.

But the reasons for opposition to Mr. Mersch went beyond gender.

Some members of the European Parliament were uncomfortable with some of Mr. Mersch’s economic ideas, in particular his wariness of inflation. Others, including the Spanish, would have preferred that someone from Southern Europe had been selected.

The decision by European leaders to appoint Mr. Mersch met with criticism immediately from one of the members of the European Parliament who had fought to give women more prominence in central banking.

“The E.C.B. now has a member on its highest board without a democratically established mandate,” said Sharon Bowles, chairwoman of the economic and monetary affairs committee.

Ms. Bowles called on European leaders to make good on promises to establish a plan for greater diversity at central banks.

The dispute over Mr. Mersch is part of a broader push to advance the role of women in business in Europe that has met with opposition.

This month, Viviane Reding, the European justice commissioner, had to drop plans to penalize companies that did not have at least 40 percent of their board seats filled by women.

Facing resistance from Britain and other countries, Ms. Reding said sanctions would apply only in cases where noncompliant companies did not establish adequate selection procedures.

That proposal still needs the approval of national governments and the European Parliament to become law.

Article source: http://www.nytimes.com/2012/11/24/business/global/despite-objections-luxembourg-banker-named-to-ecb-board.html?partner=rss&emc=rss