On Friday 25 November 2022, the Board of Governors of the European Stability Mechanism (ESM) appointed Luxembourg's former Minister of Finance, Pierre Gramegna, as ESM Managing Director, effective 1 December 2022.
The ESM is an international financial institution headquartered in Luxembourg. It comprises the nineteen finance ministers of the euro area. The institution was created in 2012 in the context of the sovereign debt crisis to support eurozone member states in distress and it has a lending capacity of €500 billion.
On Friday, the ESM Board of Governors unanimously appointed Pierre Gramegna as the new Managing Director of ESM for a five-year term. From 1 December, he thus takes over from Christophe Frankel, who took on the role of interim Managing Director after the retirement of Klaus Regling in early October 2022.
Following the withdrawal of Pierre Gramegna's candidacy in September 2022 to unblock the appointment process, the talks held over the past few weeks under the responsibility of Eurogroup President Paschal Donohoe revealed a broad consensus around the need to appoint a political figure with the necessary expertise to conduct the ESM, noted Luxembourg's Ministry of Finance in a statement released on Friday.
Commenting on this news, Luxembourg's current Minister of Finance, Yuriko Backes, stated: "I warmly congratulate Pierre Gramegna on his appointment as the new Managing Director of this key institution in the European financial architecture. In this period of polycrisis, I am convinced that, as a dedicated European, Pierre will bring all the qualities necessary to contribute to the stability and solidity of the eurozone thanks to his experience and his ability to federate".
Paschal Donohoe, Eurogroup President and ESM Board of Governors Chairperson, said: "I am pleased to announce that the Board appointed Pierre Gramegna for a five-year term. I would like to congratulate Pierre and wish him all the best in leading an institution that is crucial to the stable functioning of the euro area. I am certain that under his leadership, the ESM will continue to be the strong and dependable institution it has grown to become".
ESM interim Managing Director Christophe Frankel added: "I welcome the Board of Governors' decision to appoint Pierre Gramegna as the next ESM Managing Director. In my view, he is an excellent choice to lead the ESM, thanks to his expertise in economics, finance and law. He has extensive experience in managing organisations, as well as a deep knowledge of the ESM itself, having been a Governor for eight years while Luxembourg's Finance Minister. He is widely respected for his achievements and admired as one of the pioneers of sustainable finance in Europe. I am confident that in the challenging years ahead, the ESM in will be in good and capable hands".