Erkki Liikanen proposed as new Governor of Bank of Finland

Parliamentary Supervisory Council votes 7-2 in favour of EU Commissioner

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The Parliamentary Supervisory Council of the Bank of Finland resolved on Thursday to propose that Erkki Liikanen, EU Commissioner for Enterprise and Information Society, be the next Governor of the Bank of Finland, effective from July 1st. The Governor's term of office lasts seven years.
      The decision was not unanimous. A vote was necessary, but Liikanen won out over Sixten Korkman, Chairman of the Council of Economic and Finance Ministers of the European Union (ECOFIN), by seven votes to two. The position of Governor became vacant when the current holder Matti Vanhala announced he was to resign on health grounds. Vanhala retired on a disability pension at the beginning of this month.
     
According to unconfirmed TV news reports, the Centre Party members of the Council were persuaded behind Liikanen’s candidacy after an agreement was reached that Liikanen’s seat on the EU Commission would go to Olli Rehn (Centre) for the remainder of the present term, until the mandate of the Commission led by Romano Prodi runs out at the end of October.
      Korkman’s two votes came from Janina Andersson of the Green League and Ben Zyskowicz (National Coalition Party).
     
The government will discuss the matter at its regular Thursday meeting next week, when the Minister of State at the Ministry of Finance Ulla-Maj Wideroos (Swedish People’s Party) will present the candidate to the Council of State.
      Wideroos is not strictly obliged to put forward the nominee of the Supervisory Council, but could theoretically name any one of the other 33 candidates who applied for the job, including Jukka Pekkarinen, the Director of the Labour Institute for Economic Research, and all three sitting members of the Bank’s Board of Directors: Matti Louekoski, Sinikka Salo, and Pentti Hakkarainen. However, it is likely that things will go according to the letter, as Wideroos has previously stated that she would be prepared to defend vigorously the position of either Liikanen or Korkman over any other candidate who might have been suggested.
     
The Governor is then formally appointed by President Tarja Halonen, most probably on Friday of next week.
      Halonen, too, has in the past taken a different line from that recommended by her government, most noticeably in the appointment of Hakkarainen and Salo to the Board, so technically at least the race remains open. However, the Chairman of the Parliamentary Supervisory Council Olavi Ala-Nissilä (Centre Party) discussed the issue with both Wideroos and Halonen on Thursday and expressed confidence that the decision would be implemented as such.
      One note of dissent was heard from Council member Ilkka Kanerva (National Coalition Party), who commented that Ulla-Maj Wideroos’s statement that she would back only Liikanen or Korkman set restrictions on the Council’s freedom of choice. Wideroos had noted in a recent newspaper article that she would be prepared to diverge from the Council’s recommendation if either of these two men were not chosen.

More on this subject:
 Jovial Commissioner is well-networked in European circles

Previously in HS International Edition:
  Liikanen turns down offer of top broadcasting job (15.4.2004)
  New Governor of Bank of Finland to be appointed rapidly (14.4.2004)

Helsingin Sanomat