PM running out of candidates for BoI chief

Sources inform "Globes" that two prominent economists have turned down Netanyahu's approaches, one of them being Prof. Eugene Kandel.

The list of putative candidates for Governor of the Bank of Israel is drying up. After the withdrawal of Prof. Leo Leiderman, 48 hours after his appointment to the post was announced, there is sense of shock, and those surrounding Prime Minister Benjamin Netanyahu realize that it will now be hard to find a worthy, self-respecting candidate who will be prepared to undergo the Via Dolorosa of the Turkel Committee.

Nevertheless, the prime minister is determined to appoint a new central bank governor as soon as possible, Sources close to him believe that by the end of this week a candidate will be selected and will be in the throes of the Turkel Committee's examination.

The weekend's events will not be forgotten quickly, however, and already a "Frenkel-Leiderman effect" is detectable. Sources inform "Globes" that two prominent economists have turned down Netanyahu's approaches. One of them is none other than Prof. Eugene Kandel, who heads the National Economic Council, and is in effect the prime minister's economic adviser.

It should be stressed that even on the first day that the race for the governorship of the Bank of Israel began, Kandel sent out a press release declaring that he was not a candidate for the post and did not seek it. That Kandel ruled himself out from the start is one of the great enigmas of the race, since, on paper, he has every qualification for the job. It is believed that the reason behind his refusal is that he is not prepared to receive greater public exposure, beyond that which arises from his current position.

So, despite the sense of obligation that Kandel feels towards Netanyahu, "stage fright" is apparently the overriding factor, especially after the withdrawals of Leiderman and Jacob Frenkel. As mentioned, the position was offered to another economist, believed to be a senior figure at the Bank of Israel.

"Globes" has learned that, despite the pressure being exerted on Netanyahu, Dr. Karnit Flug, deputy governor of the Bank of Israel, and currently acting governor, who was considered the leading candidate at every stage, will not be made governor. The prime minister does not hold her in high regard, and has refused determinedly, even somewhat obsessively, to appoint her, and he is not seen relenting now.

Published by Globes [online], Israel business news - www.globes-online.com - on August 4, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

5 Comments
View comments in rows
Update by email about comments talkback
POST
Comments
Your name
Please insert your name
Content
Hyperlink in a new window Hyperlink Right Left underline italic bold Bulleted List Ordered List Face1 Face2 Face3 Face4 Face5 Face6
Your comment

Thanks
You comment was recieved and soon will be published.
In posting comments, I agree to abide by the Terms of Use
Globes encourages lively and frank debate, but posts that the editors consider merely abusive or otherwise inappropriate will be removed. Report inappropriate content
Thank you for posting your comment, which will be reviewed for publication.
Loading Comments...load
Load more comments
MORE FROM GLOBES
Slowdown will worsen

The vested interests that continue to claim that the economy is improving are deceiving the public, says Eyal Horowitz.

Can the US maintain growth after QE3?

Leading economists will discuss "The US: catch 22 the zero interest rate" at the "Globes" 2013 Israel Business Conference.

Twitter Facebook Linkedin RSS Newsletters גלובס