We learn from Bloomberg that Mario Draghi will effectively face a 50% pay cut when he takes over the ECB Presidency from Jean-Claude Trichet in November. In fact, as the Governor of the Italian Central Bank, in 2010 he earned almost €758,000, while the annual salary for the ECB's top post is fixed at around €368,000.It's not the same as asking for a pay cut, and €368,000 isn't exactly pocket change. But Draghi could have decided to stay at the Italian Central Bank, earn twice as much and face much less stress. Though Italy is not the best performing eurozone economy, we don't envy the person charged with taking the ECB out of the mess it has got itself into. (We're soon to publish a paper on the ECB, catalouging just how messy the situation is, so stay put).
In any case, this is one of the few cases we've come across involving someone actually taking a hefty pay cut when moving to an EU job.
Would I be alone if I say this stinks?, is he working on the recent parliamentary system and making it up in expenses ? I'm sorry but this is so out of character for the EU, it must attract suspicion.
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