The finance ministers of the euro zone have nominated the Croatian central bank chief Boris Vujcic as the future vice president of the European Central Bank (ECB). This is the first time that a representative from the former communist East has joined the board of directors of the most important financial institution in the currency area. The 61-year-old is set to succeed the Spaniard Luis de Guindos on June 1st. Vujcic had secured the support of all 21 euro finance ministers and himself
thus prevailed against five competitors.
The decision is seen as a rare opportunity for one of Europe’s smaller economies to fill a top post at the ECB. Since the founding of the monetary union more than a quarter of a century ago, the large member states have dominated the management echelon. According to insiders, the heavyweights Germany, France and Spain deliberately held back this time. They are therefore concentrating on filling even more important positions in the coming year: in 2027 the positions of president, chief economist and director of market operations will become vacant. The position of ECB boss Christine Lagarde will also become vacant when her term of office expires at the end of October next year.
Vujcic is in his third term at the head of the Croatian central bank. The qualified economist steered his country into the Eurozone as the 20th member in 2023 – followed by Bulgaria – and was significantly involved in the negotiations for EU accession in 2013. When it comes to monetary policy, the former university professor is considered a moderate hawk. He recently persistently warned of ongoing inflation risks and urged caution when cutting interest rates. He takes over as Christine Lagarde’s deputy in a comparatively calm phase in which inflation is close to the target value and interest rate changes are not currently on the agenda.
The final confirmation of the personnel by the heads of state and government is considered a formality. However, resistance is expected from the European Parliament. Although MPs cannot block the appointment, they are likely to raise concerns about the lack of gender parity. There are currently 25 men on the 27-member ECB Governing Council. The losing candidates included, among others, the Portuguese former finance minister Mario Centeno and the Finnish central bank chief Olli Rehn.
