Super Mario

Italy's Mario Draghi was formally appointed the new president of the European Central Bank (ECB) on Friday, during the final day of an EU summit.

EU president Herman Van Rompuy confirmed that the 68-year-old banker would begin his eight-year term on November 1, succeeding Frenchman Jean-Claude Trichet.

Draghi's first task will be to stabilize the eurozone, which commentators warn is threatened by Greece's near-default status.

The decision to appoint Draghi came a day later than expected, after an apparent Franco-Italian disagreement over France's national representation on the ECB's executive board.

France was reportedly concerned that, with Draghi's appointment, Italy would have two representatives at the top, while France would be left with none. It has since been confirmed that Italy's second representative on the board, Lorenzo Bini Smaghi, has conceded his position.

Nicknamed "Super Mario" by the Italian press, Mario Draghi is credited with restoring the Bank of Italy's prestige over the last six years. Draghi has also acquired international status as head of the Financial Stability Board, which played a key role during the international banking crisis in 2008.

Germany had hoped former Bundesbank President Axel Weber would take the job, but the race became wide open earlier this year after Weber's unexpected resignation.

Welcoming a new member

In addition to the appointment on Draghi, EU leaders also agreed to welcome Croatia as the latest member of the European Union.

On the eve of Croatia's 20th anniversary of independence, the Balkan country was given the green light to become the European Union's 28th member.

But the invitation isn't without conditions.

EU leaders warned that the Croatian government must continue to fight widespread corruption with "vigor".

Over the last six years, the country's preparations for EU membership have been set back by reports that it had failed to tackle corruption, reform its judiciary and prove it had recognized its role in the Balkan wars in the 1990s. As a result, EU countries had been reticent to accept it into the fold.

In light of Friday's decision, the EU is expected to heighten its scrutiny of reforms in Croatia and Zagreb's hopes of joining the EU in July 2013 could still be jeopardized.

It is unlikely that the EU will extend its membership further in the next few years, with voters around the continent wary of its cost at a time of economic austerity.

Author: Charlotte Chelsom-Pill (AFP, dpa, Reuters)

Editor: Susan Houlton