Mr Jean-Claude Trichet has been formally ratified as head of the European Central Bank (ECB) with effect from November 1st.
The current governor of the Bank of France - considered an urbane, consummate diplomat - succeeds the unpopular and dour Dutchman, Mr Wim Duisenerg.
Mr Trichet will need all his famed finesse and experience in handling financial market to confront budget rows within the EU while at the same time maintaining a stable euro in the face a tumbling dollar and a raft of new member states bidding to join the euro.
But he has shown little appetite for innovative monetary policy to help revive stubbornly weak European economic growth.
Europe's politicians think the ECB could do more to stimulate growth and are particularly unhappy at its stipulation that State borrowing should not exceed more than 3 per cent of GDP.
French Finance Minister Francis Mer this week urged the central bank to use interest rates pre-emptively to counter sluggish growth or a drop in the dollar, while Britain's finance minister Mr Gordon Brown also criticised monetary policy.
French President Jacques Chirac's spokeswoman, Ms Catherine Colonna, said in a statement: "We are delighted with this appointment. This is also the occasion to salute the work accomplished by Mr Wim Duisenberg and by the ECB, which has managed to play its full role ever since its creation."
Mr Trichet almost lost out on the opportunity to succeed Mr Duisenberg after he became implicated in a financial accounting scandal at Credit Lyonnais. However, he was cleared of wrongdoing last June.
His appointment was ratified by heads of State at the EU summmit in Brussels today.