The post of vice-president at the European Investment Bank, which will not now be taken by the former judge, Mr Hugh O'Flaherty, carries a salary of about £147,000.
The bank, owned by the 15 member-states of the European Union, funds projects which further its objectives. The strong credit rating enjoyed by its owners means that it can borrow money at the best possible rates on the international money markets. It lends this money at favourable interest rates to "eligible" projects, which are defined as those which further economic integration and cohesion.
Projects backed by the bank are not confined to the EU. For example, one of its latest projects is a Balkan Task Force, set up in June 1999 to evaluate investment needs and identify priority projects in war-ravaged areas of south-east Europe. But most of its funds are disbursed within the EU. Some €27.8 billion of the €31.8 billion it lent last year went to member-states.
Irish projects supported by the EIB last year included a gas-fired electricity generation station planned by the ESB in joint venture with Statoil at Poolbeg in Dublin. This project secured €95 million from the EIB.
The bank also lent almost €18 million to two venture-capital funds backed by the Industrial Credit Corporation.
A non-profit organisation, the EIB's board of governors comprises the finance ministers in the EU states. Below them is a board of 24 directors from the EU member-states and one from the European Commission.
Mr O'Flaherty would have joined the board as vice-president of the bank. The post to which the Government nominated him last May is one of eight on the bank's management committee, chaired by its president, Mr Philipe Maystadt.
Unlike Germany, Italy, France and Britain, the Republic does not have a permanent representation on the bank's management committee. The smaller EU states rotate the appointment among them in groups. Denmark and Greece are the Republic's partners in this case.
Before Mr O'Flaherty's decision last night to withdraw his nomination, it was expected that he would be based in Luxembourg for the duration of his four-year term. The salary is the same as an EU Commissioner.
The only previous Irish appointee was Prof Noel Whelan, who was secretary of the Department of the Taoiseach when he was appointed EIB vice-president in 1982. Prof Whelan served two four-year terms and was succeeded at the Department by Mr Padraig O hUiginn.
