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The ECB's Mario Draghi

by Robert Teitelman  |  Published October 14, 2011 at 1:00 PM

101711 penandinc.jpgMario Draghi has all the credentials -- but are diplomas from Rome's Sapienza University and the Massachusetts Institute of Technology (supervised by economics Nobelists Franco Modigliani and Robert Solow), a faculty perch at the University of Florence, service at (you guessed it) Goldman, Sachs & Co., the World Bank plus a clutch of transnational boards including the Bank for International Settlements and the Financial Stability Board enough to save the euro zone? In a few weeks Draghi, 64, will replace France's Jean-Claude Trichet, who recently convened his last meeting as president of the European Central Bank. Draghi, the current Bank of Italy governor, has struggled to cope with an Italian economy beset by euro-zone woes and the antics of Berlusconi. But he almost didn't get the ECB job because of an issue near the heart of Europe's problems: He hailed from the "wrong" country. Trichet was French, and France resisted giving up a key European power job. After a complicated deal, Draghi finally won, but now, as he prepares to take over, he has to convince a punch-drunk world that he is truly European, not Italian, and that he must spend German and French euros to save the Mediterranean nations, including Italy. Some test.

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Tags: Bank for International Settlements | ECB | euro zone | European Central Bank | Financial Stability Board | Franco Modigliani | Jean-Claude Trichet | Mario Draghi | Robert Solow
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