European Union finance ministers yesterday picked French Treasury director Mr Jean Lemierre as their candidate to head the London-based European Bank for Reconstruction and Development (EBRD), almost certainly guaranteeing him the job.

"Mr Jean Lemierre . . . has emerged as the agreed candidate of all participants at the meeting for appointment as chairman of the European Bank for Reconstruction and Development," the Portuguese Finance Minister Mr Joaquim Pina Moura told a news conference at the end of a meeting of EU finance ministers.

EU governments are collectively the largest shareholder and the decision is likely to be ratified by the EBRD's board of governors at or around the Bank's annual general meeting in Riga, Latvia, on May 21st and 22nd.

Mr Lemierre, who is also the current chairman of the EU's powerful economic and financial committee, making him the main pointman in co-ordinating EU positions ahead of meetings of G7 finance ministers, faced only one challenger for the job, Spanish parliamentarian Mr Luis Gamir. Spain traditionally contests any attempts by the EU to favour its relations with eastern Europe at the expense of other regions and the late nomination appeared to be more an attempt to put down a marker rather than to capture the post.

Mr Lemierre's two-year stint as EFC chairman officially ends in December and France also assumes the EU presidency in the second half of 2000.

The EU must now seek a replacement for Mr Lemierre as EFC chairman. EU diplomats expect Italian Treasury Director Mr Mario Draghi to get the job, but said German Finance Ministry State Secretary Mr Caio Koch-Weser was also a possibility.

Mr Koch-Weser narrowly missed out winning a recent contest to head the International Monetary Fund, a job which went to former EBRD president Mr Horst Kohler after the United States objected to Mr Koch-Weser.)