Frankfurt, April 11 (Bloomberg) -- European Central Bank President Wim Duisenbergsaid he had no plans to resign halfway through his eight-year term, dismissingreports that his successor might be named soon. At a press conference, Duisenberg recalled that he told European Union leaders in1998 he ``did not expect or did not regard it as likely'' that he would serve a full term.He also pointed out that when asked months later if he would step down midway, ``Igave the simple answer: no.'' ``These statements are still valid,'' Duisenberg added. Under an unwritten 1998 accord, Duisenberg has agreed to step down after fouryears, once euro notes and coins are introduced. Yet the timing of his departure isunclear, both because of his successor-designate's judicial woes and because of hisown conflicting remarks on the subject. ``It's a bit messy to have succession problems at a time like this,'' said EmmanuelFerry, senior economist at Paris-based brokerage Exane. ``We don't know who'sgoing to be in charge next year.'' A global slowdown is taking its toll on Europe. German, French and Italian businessconfidence are at their lowest in some 18 months, and German joblessness is on therise. The 12 euro states will probably grow 2.7 percent this year, down from 3.4percent last year, according to the Organization for Economic Cooperation andDevelopment.
Rates on Hold
Still, the ECB, with Duisenberg at the helm, has refrained from cutting interest ratesin two years. It left them unchanged again today, at 4.75 percent. And disagreementswithin the bank have broken out in the open. On March 22, Chief Economist Otmar Issing said the central bank must lower itsestimates for growth and inflation. The next day, council member Jean-Claude Trichetsaid the ECB is no longer worried about prices. That night, Issing retracted hiscomments. According to a Financial Times report on Monday, European central bankers andpoliticians want a successor to Duisenberg be named before euro notes and coinsare introduced in January. Yet next-in-line Trichet, the Bank of France governor, is currently under judicialinvestigation for the near-collapse of state-owned bank Credit Lyonnais SA. As headof the French Treasury from 1987 to 1993, he represented the government on theboard of the then state-owned bank.
Veiled Response
The Dutchman himself has never said when he plans to leave. Asked in the December 1998 ``Le Monde'' interview whether he'd quit after four years,Duisenberg said, ``The answer is no.'' In a subsequent interview to Italian daily La Repubblica, he was less clear. ``I havebeen chosen for the entire mandate and this is a fact,'' he said. ``Whether I will stayuntil the last day or not is something which we shall see later, but certainly I want tostay for a long time.'' Duisenberg described the job as ``interesting and fascinating.'' Spokesman ManfredKoerber told reporters the same day that his boss Duisenberg was unlikely to serve afull term because of his age. The Dutchman would be 71 at the end of the eightyears. Economists say Duisenberg's departure would certainly change the bank. ``There'slikely to be a shift in the way the ECB is perceived and perhaps in the way itoperates as well,'' said Julian Callow, chief continental European economist at CSFBin London. ``Inevitably, the president has a lot of influence in external perceptions of anyinstitution,'' Callow said. Duisenberg is bound to leave next year, he added. The question is when.