ECB chief should stay on, says EU official

Mr Wim Duisenberg should stay as European Central Bank (ECB) president because of a jail threat hanging over his likely successor…

Mr Wim Duisenberg should stay as European Central Bank (ECB) president because of a jail threat hanging over his likely successor, said the chairwoman of the EU parliament's monetary and fiscal policy committee.

Ms Christa Randzio-Plath told the Financial Times DeutschlandMr Duisenberg should agree to work past the July date set for his retirement from the post to allow time for the trial of his Mr Jean-Claude Trichet.

Officially, Mr Duisenberg is scheduled to retire on July 9th, when he turns 68. But Mr Trichet - governor of the Bank of France - is on trial, accused of overlooking misleading financial reports at French bank Crédit Lyonnais in the early 1990s.

The allegations relate to when Mr Trichet was treasury director at the French finance ministry and the bank was heading towards collapse.

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The trial verdict will not be announced until June 18th, just three weeks before Mr Duisenberg's scheduled retirement date. The state prosecutor is demanding a 10-month suspended jail sentence for Mr Trichet.

Even he is found innocent, the prosecutors could appeal against the verdict and therefore further delay the succession process at the ECB, Ms Randzio-Plath said.

AFP