Government proposes Tutty for ECB board

The Government is to make its first attempt to get an Irish candidate elected to the executive board of the European Central Bank (ECB), nominating Mr Michael Tutty for an upcoming vacancy. Mr Tutty (57) is currently a vice-president at the European Investment Bank (EIB) and, as a former senior Department of Finance civil servant with extensive experience in monetary policy, will be seen as a strong contender .

The six-person executive board is the powerful group that manages the operation of the ECB, under the chairmanship of the president, Mr Jean-Claude Trichet. Members are appointed by the EU finance ministers and Mr Tutty is being nominated for a vacancy being left by the departure of Mr Eugenio Domingo Solans from Spain.

The importance of the post means it is certain to be contested by a number of candidates, although Mr Tutty is believed to be the first to be formally declared. Finance Minister Mr McCreevy, in a statement, said he had asked other countries to indicate whether they wished to put forward candidates, but said he believed Mr Tutty was "an excellent candidate who more than fulfils the requirement that persons appointed to the executive board of the European Central Bank should be of recognised standing and professional experience in monetary or banking matters".

The appointment will be decided during Ireland's presidency, when Mr McCreevy will be in the chair, and his move to nominate Mr Tutty suggests a belief in Government that he has a strong chance of success. The new candidate will take up the position next January.

Spain may decide to put forward its own candidate, while Belgium - which unsuccessfully contested the last executive board position - may do likewise. The job carries an annual salary of just over €200,000.

Mr Tutty's term as vice-president of the EIB ends in October. Denmark will appoint his successor, as they share a constituency with Ireland He was appointed to the post in October 2000 by the Government. This was after the former Supreme Court judge, Mr Hugh O'Flaherty, asked for his name to be withdrawn as the Government nominee, following months of controversy about his nomination due to his previous intervention in the case of Mr Philip Sheedy.

Mr Tutty rose to be second secretary general in the Department of Finance with responsibility for budget and economic matters. Prior to that he had relevant experience as assistant secretary responsible for EU co-ordination, exchange rate policy and banking legislation.

He was involved in drawing up the Maastricht Treaty and was chairman of the alternates of the EU Monetary Committee, the senior group of officials who oversaw the EU exchange rate mechanism.