Vujčić now faces an awkward hearing in Parliament, whose non-binding preference for the post was completely ignored by finance ministers. The 61-year-old will need to bring Parliament onside to avoid MEPs voting against his victory in a symbolic, but politically embarrassing, ballot — a similar fate to when Luxembourg’s governor, Yves Mersch, joined the ECB’s highest echelon in 2012.
Dark horse
Vujčić has vast experience as a central banker, having led the Croatian National Bank since 2012, and is highly regarded among fellow rate-setters. But his appointment will still come as a massive surprise to ECB watchers who have long bet on Rehn. Rehn’s dual experience in Brussels politics and monetary policy had widely been seen as giving him an edge over his five rivals.
Croatia’s chances were seen as slim from the outset, as it only joined the eurozone in 2023, placing it toward the back of the queue for a seat at the Executive Board. None of the three Baltic states, which adopted the euro roughly a decade earlier than Croatia, have yet had a representative serve on the Board.
While generally considered a moderate hawk, Vujčić defies the usual northern-hawk-versus-southern-dove classification that has historically dominated debates when politicians haggle over coveted positions at the ECB.
His appointment is thus unlikely to change the probability of either a northern heavyweight such as Germany or the Netherlands, or a southern contender such as Spain, securing the presidency.
Current front-runners for the top job include former Dutch central bank chief Klaas Knot and Bank for International Settlements head Pablo Hernández de Cos. But in European politics, two years is an eternity. Lagarde herself only emerged as a serious candidate late in the process to name a successor for Mario Draghi, showing how fast the ECB’s leadership race can turn.