A short list of candidates for the position of vice-president of the European Investment Bank is being drawn up by the Government as it moves to close off the controversy over the O'Flaherty affair before the return of the Dail in the autumn.
The Government remained reticent on the fiasco yesterday, with the Minister for Finance, Mr McCreevy, refusing to make any public comment on the affair as backbenchers signalled their fear that seats could be lost over the issue at the next election.
The EIB has made it clear that the alternative candidate for the £147,000-a-year position has to be professionally and personally qualified for the post "absolutely and unquestionably".
Favourites for the job are the chief executive of the National Treasury Management Agency, Dr Michael Somers, the second secretary at the Department of Finance, Mr Michael Tutty, and the former secretary-general at the Department of Public Enterprise, Mr John Loughrey.
Mr Somers was sounded out about the job before it was offered to Mr O'Flaherty, but he said he was not interested in moving to Luxembourg. However, there is some suggestion he may be persuaded to change his mind.
Privately, Fianna Fail backbenchers were highly critical of Mr McCreevy's handling of the O'Flaherty's controversy. Several told The Irish Times they feared seats would be lost because of the issue in the next election. One suggested that only a Cabinet reshuffle would restore public confidence in the Government.
Mr McCreevy is expected to bring the name of a candidate to the Cabinet for approval at its first meeting after the summer break next Wednesday.
An EIB spokesman admitted yesterday that "a number" of the bank's 25 directors had had doubts about the O'Flaherty appointment. He indicated that not all of the six votes received were in favour of the former Supreme Court judge. The spokesman admitted that the bank had become "more and more uncomfortable" about the issue in the last few weeks. "We are convinced there are plenty of suitable candidates in Ireland," he said.
The bank said yesterday the O'Flaherty affair underlined the fact that the board of directors was effective in its role of "independently running the bank" and of ensuring its best interests.
Other than his statement on Monday evening saying he regretted Mr O'Flaherty's decision to withdraw his name, there has been no further public comment from the Minister for Finance or any member of Government.
A spokesman for the Minister said he was giving no interviews on the affair at present.
Following Cabinet approval, Mr McCreevy will seek approval from Denmark and Greece for the candidacy, probably at an informal meeting of EU finance ministers in Versailles next week.
Opposition parties yesterday stepped up pressure on the Minister to resign. The Labour Party leader, Mr Ruairi Quinn, joined Fine Gael in saying that Mr McCreevy's position was untenable. He said it was the latest in a series of "own goals" during his time as Minister for Finance.
The Fine Gael leader, Mr John Bruton, called for a new vetting mechanism for people seeking senior international posts. He said the 20 or so people who applied for the EIB job should have their applications assessed by the Government.