Italian Central Bank President Is Expected To Take Over The European Central Bank &Nbsp; Known As "Inflation Fighter".

Central Bank

President Tyse (left) and Italy central bank governor Delagi

Italians, German spirits, and a dedicated "inflation fighter" may be the best footnote for Mario Delagi, the "quasi" governor of the European Central Bank.

After Germany's approval, Italians Mario Delagi is expected to be on the throne of the head of the European Central Bank in November to replace Trichet.

On the 11 day, German Chancellor Merkel gave his first support to the incumbent governor of Italy, Delagi, as the next president of the European Central Bank. It also cleared a big obstacle for the latter to finally hold the European Central Bank.

Analysts believe that when Delagi takes office, he will probably focus on Germany's support and hope.

Germany stands for "Hawk" Delagi

German government spokesman Steigman J said in Berlin 11, if Delagi takes part in the next European central bank governor's election, the German government will give its support.

German Chancellor Merkel also agreed with Mr. Draghi for the first time.

"I know Mario Delagi very well."

Merkel said in a media interview on Wednesday, "he has a culture of financial stability.

The industry believes that Germany's public statement, almost Delagi "on the move" on the European Central Bank's throne.

France and Italy have agreed to Delagi's candidacy.

According to the plan, the EU will decide on the next European central bank governor at the June 24th summit.

Germany began to look for other candidates after the German central bank's former president Weber dropped out of the ECB president for personal reasons.

Finally, Delagi, 63, entered Merkel's vision.

Draci has been the governor of the Central Bank of Italy since February 2006, and is known for his serious work attitude, excellent diplomacy and low-key way of doing things.

Germany has experienced painful and vicious inflation after the war. Since then, the Bundesbank has been fighting inflation as the top priority of monetary policy.

Germany has been trying to use its influence as a model for other European central banks, including the European Central Bank.

Medium or good Euro

Analysts noted that Delagi's recent statements indicate that he is willing to fully implement the German style anti inflation stance.

In a speech last month, Delagi said that interest rates in the eurozone are still "stimulating", even after the central bank has raised interest rates.

He also said earlier that Germany was an example of other euro zone countries, and he vowed to ensure price stability first, and called for severe penalties for those countries with deficits.

Delagi, an economist at Holland commercial bank, seems to be a dedicated "inflation fighter".

"His presidency will have a distinctive" German color ", even if he is the ECB chairman.

Delagi's assumption of "endorsement" in Germany may mean that the European Central Bank will step up its efforts to withdraw from unconventional policies and curb inflation.

Inflation in the euro area has reached 2.8%, far above the official target ceiling of 2%.

In April, the European Central Bank restarted interest rates for the first time since the financial crisis and raised interest rates by 25 basis points to 1.25%.

Economists expect the ECB to raise interest rates at least once every three months, and the next rate hike is likely to be in July.

Market participants believe that if the hawkish Delagi is in charge of the European Central Bank, the euro will be supported by the US dollar.

Unless the Fed suddenly reverses the tone of the policy, Mr Draghi's term of office is bad for the US dollar in the medium term.

Hidden dangers of debt crisis

It should be pointed out that although Delagi's first task is to suppress inflation, at the same time, the polarization of the euro zone economy has brought great difficulties and risks to his policy implementation.

For now, the biggest problem in the euro area is Greece.

On Wednesday, the euro fell 1.5% against the dollar, because the market was worried that the eurozone might not be willing to provide new assistance to Greece, resulting in the country's forced debt restructuring.

Earlier, the rating agency Standard & Poor's announced on the 9 day, its debt rating to Greece two downgrades, that the country is likely to be forced to debt restructuring.

Besides Greece, Portugal, Ireland and other countries are also facing more serious debt problems, which may become new troubles at any time.

S & P warned on Wednesday that if Portugal's banks still need more assistance in the implementation of the 78 billion euro rescue plan, Portugal's "BBB-" credit rating may face downside risks.