BRUSSELS: European finance ministers will huddle Monday for discussions certain to center on a second Greek bailout, while anointing an Italian to head the pivotal European Central Bank. The 17-nation eurozone and the other 10 European Union states will hold a series of meetings alongside International Monetary Fund managing director Dominique Strauss-Kahn during which a 78-billion-euro ($110 billion) rescue package for Portugal– like Greece mired in debt – is also expected to be voted through. The European ministers are also set to recommend Italian central bank governor Mario Draghi as the successor to France's Jean-Claude Trichet as president of the European Central Bank. “Done deals” on both counts, according to EU diplomats, although the ascension of an Italian poses two political problems, sources say, given the presence of another Italian, Lorenzo Bini Smaghi, on the central bank's executive board. Wealthy northern eurozone states such as The Netherlands fear too much influence being wielded by debt-laden Mediterranean states, while France could seek to retain a seat on the ECB's inner decision-making panel for itself. What is clear is that one year after a 110-billion-euro bailout of Greece, the black hole facing the government in Athens will again top the unofficial agenda. French Finance Minister Christine Lagarde told the BBC on Thursday night that “the consideration at the moment is to extend those (bilateral loans) if it was necessary,” after being pressed repeatedly to rule out a second bailout with new cash loans. She suggested a system of bilateral loans from eurozone states used first time around was again an option. The Conservative-led government in London says its hands were tied by Labour predecessors on participation in an EU-wide fund – the European Financial Stability Mechanism already used to part-finance loans to Ireland under its 67.5-billion-euro international bailout and which will also figure in the Portuguese aid package. – Agence France
