European finance ministers will propose that Bank of France Governor, Mr Jean-Claude Trichet,takes over the presidency of the European Central Bank on November 1st, according to EU sources.

The decision would leave ECB president, Mr Wim Duisenberg, in charge for four more interest-rate decision meetings at an uncertain time for the sputtering 12-nation euro-zone economy with markets unsure about further rate cuts .

"The Ecofin [meeting of finance ministers\] will recommend Mr Trichet as president of the ECB for an eight-year period, taking effect on November 1st," an EU diplomat said,quoting the draft recommendation that would be discussed by EU finance ministers next week.

"No objections were raised as to the content of the recommendations," he said. EU ambassadors discussed the agenda item, which was likely to be approved without debate by EU finance ministers on June 15th .

The ECB declined to comment, saying appointment of its president was in the hands of political leaders. European leaders designated Mr Trichet as the successor of Mr Duisenberg at a summit last month, but appointment procedures mean Mr Trichet is unlikely to be in office before October.

Once EU finance ministers have formally nominated Mr Trichet, which is expected to rubberstamped at next week's Ecofin meeting, the European Parliament and the European Central Bank must give their opinion on his candidacy.

Parliament's Economic and Monetary Affairs committee has said it plans to vet Mr Trichet at a hearing on September 11th and will then pass on its recommendation to the full parliament, which has a meeting scheduled for September 22nd to 25th. Mr Duisenberg is stepping down early from the top ECB job as agreed in a deal struck in 1998. - (Reuters)