(Bloomberg) – The Deputy Governor of the Estonian Central Bank, Madis Muller, has been appointed to replace President Ardo Hansson as a voting member of the Baltic nation on the Board of Governors of the European Central Bank.
Muller was supported by the supervisory board of the eight-member Estonian Central Bank on Swedbank AB's Estonian unit chief, Robert Kitt, and senior Finance Minister Marten Ross, according to a communicated by e-mail. He must now pass a background check and be approved by President Kersti Kaljulaid for a seven-year term beginning in the middle of the year.
Hansson's successor will come as the country grapples with the $ 235 billion worth of dirty money scandal that has affected the local branch of Danske Bank A / S, based in Copenhagen. Hansson, along with Prime Minister Juri Ratas, congratulated the financial supervisor on his role in ceasing the activities of non-residents of the branch in 2015, even as bank guards in Denmark and Estonia argued over the latter. weeks under the responsibility of their counterparts. in the treatment of the problem.
Muller will join the Governing Council of the ECB at a crucial moment. Policymakers have been moving gradually out of unconventional stimulus measures, but there is growing evidence that the Eurozone of 19 countries is facing a more prolonged slowdown.
"Decisions must be made on the basis of the information we have on the economic situation at that time," he said. "Always when you have a very accommodating long-term policy, there are potential risks. We are at an exit stage, so it is important that the eurozone do so with talent. "
Estonia will be one of the many new faces of the ECB's Governing Council this year.
Slovenian Bostjan Vasle and Belgium's Pierre Wunsch joined the group in January. Slovak Finance Minister Peter Kazimir will take over as governor when the time comes. Chrystalla Georghadji's term in Cyprus will expire in April and Philip Lane will give way to a new Irish official when he joins the ECB in June. Austria's Robert Holzmann will start in September, before President Mario Draghi and Board Member Benoit Coeure finish their duties towards the end of the year.
Muller, 42, graduated in finance from George Washington University and held positions at the World Bank and the International Finance Corporation before becoming deputy governor of the central bank in 2011.
Hansson, born in Chicago and educated at Harvard, considered a relatively warm-hearted member of the Board of Governors, can not be re-elected at the end of his term on June 6.
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