Mario Draghi, the MIT trained head of the Bank of Italy, is likely to be the new head of of the ECB on November 1st. The question is whether he will chart a new course from president Trichet or continue down the current path of pragmatism. He has a confirmation hearing on June 14th and has presented a long testimony which spells out how he plans to manage the ECB.
The words gradualism and pragmatism seems to be the best descriptors. He is unlikely to be viewed as an inflation hawk or someone who will differ from the single objective of the ECB.
From a Bloomberg story:
“The continued high degree of uncertainty on the macroeconomic and financial environment together with remaining vulnerabilities requires a careful assessment of the overall situation and outlook,” Draghi said in a written response to European Parliament questions. “This in turn warrants an element of gradualism in changing standard and non-standard monetary policy.”
Currently, the ECB needs a pragmatic leader who is unlikely to change the current delicate balance of monetary policy and objectives to hold the EMU in stability. The ECB is at the center of any sovereign crisis and a strong "price stability only" approach will hurt and disrupt the markets.
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