The European Central Bank (ECB) council selected Claudia Buch, deputy governor of the German Bundesbank, as the preferred candidate to chair the Single Supervisory Mechanism (SSM), the ECB’s body responsible for supervising the 109 largest banks from 21 of the 27 European Union member states. The other candidate, Erdoğan, the Bundesbank’s number two, brings more than 30 years of experience in banking supervision at all levels, including work within the German central bank and the ECB itself. Despite this, the council’s decision favored Buch, signaling confidence in her profile for the euro area’s top bank oversight role. This outcome was discussed behind closed doors in mid-July after the Parliament’s economic committee provided its assessment; Buch was identified as the strongest candidate and was informed by the ECB president through a formal letter. Some members questioned whether Christine Lagarde may have preferred the German nominee, a view amplified by reports that a letter sharing process with other governing council members was not fully transparent. [Citation: Economic Commission of the European Parliament]
The ECB later released a note confirming the candidacy of the Bundesbank’s deputy governor and stating that opinions from the coordinating economists were shared with the governing council. The vote was conducted in the management council in a closed session, and the majority backed Buch. A possible clash between the European Parliament and ECB leadership could complicate the German candidate’s appointment and trigger a fresh decision, affecting Delgado’s chances as well. [Citation: ECB note on candidacy]
key vote
Parliament must approve Buch’s appointment for it to take effect. In the coming days, the economic commission is slated to hold a public hearing with the candidate, after which its members will vote on a draft decision. That draft will then be forwarded to the full chamber for approval or rejection. If the chamber opposes the appointment, the ECB may refer the decision back, or restart the election process in line with the 2013 agreement with the Parliament. If the Parliament approves, Buch’s appointment proceeds to the EU Council for final approval by a qualified majority. [Citation: EU Parliament procedures]
Separately, the nomination has increased speculation about Nadia Calviño potentially becoming president of the European Investment Bank (EIB) from January. Calviño would primarily compete with Danish European Commissioner Margrethe Vestager. Calviño’s bid appears linked to the broader pattern of central actors from the same member state occupying multiple high-profile European roles in rapid succession, a scenario not very common in recent history. [Citation: European Commission announcements]
overrepresentation
In the current European banking framework, there are already two Spanish Hispanics in key positions: Luis de Guindos as ECB vice president and José Manuel Campa at the European Banking Authority. Germany, as the euro area’s largest economy, has seen the loss of several senior posts recently, including presidencies within the Single Resolution Mechanism and the European Stability Mechanism, and the EIB presidency could also be in flux. Delgado’s potential gains from the situation are therefore tempered by these broader balance-of-power considerations among member states. [Citation: European banking leadership review]
Discussion about Lagarde’s choice continues in the banking and auditing communities, with varying theories circulating but no definitive conclusions. Some observers suggest the French president may be seeking German backing ahead of future leadership transitions in Brussels, while others argue Lagarde intends to keep tighter control over MUS. Still others note that, since the ECB presidency and SSM leadership pose in practice to be held by two individuals from different countries, the proposed alignment with Buch could reflect a strategic effort rather than a simple preference. Such conjectures highlight the ongoing uncertainty surrounding top-level European appointments. [Citation: European political commentary]