Daily Archives: November 5, 2012

Rajoy is still angered by Spain's snubbing during Mersch's selection earlier this year.

If you thought the long, drawn-out saga of Yves Mersch’s nomination to a seat on the European Central Bank’s powerful executive board could not get any stranger, think again.

The Spanish government this morning informed Herman Van Rompuy, the European Council president, that it objected to the fast-track “written procedure” Van Rompuy had begun in order to get Mersch finally seated in the job. The procedure – which was begun after the European Parliament refused to sign off on the nomination last month – was due to end today, making it possible for Mersch to take the long-empty seat by November 15.

But the Spanish veto means Mersch now can’t go through and the appointment battle, which has dragged on for nearly ten months, will have to be taken up by the EU’s presidents and prime ministers when they summit in Brussels later this month.

The question gripping the Brussels chattering classes now is: Why? Was Madrid trying to fire a warning shot across the bow of the ECB and Berlin, which have been ratcheting up the pressure over the conditions of a long-expected Spanish rescue programme? Senior officials insist the real reason is far more prosaic. Read more