ECB reshuffles board members' responsibilities

2nd June 2010, Comments 0 comments

The European Central Bank unveiled Wednesday a redistribution of of responsibilities among its six-member executive board as new vice president Vitor Constancio assumes his duties.

Constancio, who is from Portugal, will oversee financial stability, a brief that had taken on increased importance under his predecessor Lucas Papademos of Greece, but will pass research to Jose Manuel Gonzalez-Paramo of Spain, an ECB statement said.

Barclays Capital economist Julian Callow said: "We would interpret the reshuffle as reflecting the considerable expansion in the field of financial supervision and regulation already undertaken by the ECB, and which is likely to expand substantially further."

Passing on the oversight of economic research would free Constancio to focus on the increasingly crucial field of financial stability, Callow added.

Chief economist Juergen Stark was given the task of managing ECB statistics, while president Jean-Claude Trichet retained responsibility for the bank's communication and internal auditing.

The ECB noted that while each board member oversees specific parts of the bank, they work "within the framework of its collective responsibility for the overall functioning of business areas."

Callow added that owing to "the collegiate nature of ECB decision taking ... this reallocation is unlikely to herald significant change in the ECB's strategy and interpretation of economic and financial developments."

© 2010 AFP

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