June 28, 2012 / 2:08 PM / in 8 years

Juncker to stay as Eurogroup head, Regling to take over ESM -officials

BRUSSELS, June 28 (Reuters) - Luxembourg’s Prime Minister Jean-Claude Juncker is likely to stay on as the president of the Eurogroup, while the head of the temporary euro zone bailout fund Klaus Regling is likely to become the head the permanent fund, euro zone officials said.

The decisions will be formally taken during talks among euro zone leaders on Friday, one of the officials said.

Juncker has been the chairman of the powerful council of euro zone finance ministers since 2005 and his third 2-1/2 year term expires at the end of the month.

Officials said it was not clear, however, if Juncker, who has been complaining about his health under the double workload of prime minister and Eurogroup head, would stay for a full forth term, or leave before it ends.

Regling, who has a background as an economist in the European Commission and the International Monetary Fund, and now runs the European Financial Stability Facility (EFSF), is likely to take over the European Stability Mechanism (ESM) when it takes effect on July 9, euro zone officials said.

One official also said that Yves Mersch, the governor of Luxembourg’s central bank, will fill the vacancy on the European Central Bank’s executive board.

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