FINANCE MINISTERS FROM Europe’s 20-country single currency area are to choose the next Eurogroup chief today, as the EU weighs a tough decision on using frozen Russian assets to aid Ukraine.

Belgium’s Vincent Van Peteghem and Greece’s Kyriakos Pierrakakis are running to replace Paschal Donohoe – who resigned in a surprise move from the head of the powerful panel of eurozone finance ministers.

Donohoe’s departure from politics comes as he accepted the role of managing director and chief knowledge officer at the World Bank - essentially becoming the bank’s number two.

Pierrakakis, 42, has been in charge of Greece’s finances since March, after earlier stints as minister of digital governance and education.

Van Peteghem, 45, a staunch advocate for fiscal consolidation in a country with one of the worst debt ratios in the eurozone, has looked after Belgium’s financial matters since 2020, serving in two successive coalition governments.

His candidacy comes as Belgium strongly opposes a European Commission plan to tap around €200 billion of Russian central bank assets frozen in the bloc for a loan for Ukraine to help it fend off Russia’s invasion.

Most of the money is held by Brussels-based clearing house Euroclear.

The Belgian government has voiced fears of potential financial and legal reprisals from Moscow – and warned the move could knock confidence in the broader eurozone economy.

Russia row on agenda

The issue will be on the table as the European Union’s 27 finance ministers meet for dinner talks today, after the Eurogroup leadership vote, which requires a simple majority.

Van Peteghem and Pierrakakis threw their hats in the ring after 51-year-old Donohoe announced on 20 November that he was stepping down, having only been re-elected in July for a two-and-a-half-year term.

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The Eurogroup chief carries weight in policymaking, and Donohoe counted among the most influential voices in Brussels, alongside EU chief Ursula von der Leyen and European Council President Antonio Costa.

Created in 1997, the body coordinates the economic and budgetary policies of the 20 countries of the eurozone, which will soon number 21, as Bulgaria prepares to adopt the single currency on 1 January.

Thursday will also see the Eurogroup officially launch the nomination process for the post of European Central Bank (ECB) vice-president.

Spaniard Luis de Guindos, the incumbent, is due to end his term at the Frankfurt-based institution in May next year.