Bank of England governor Eddie George said on Tuesday that arguments over who should head the new European Central Bank (ECB) could be the biggest problem in the run-up to the launch of the European single currency.

George told the Financial Times newspaper that agreeing on the president and members of the ECB's executive board would be more difficult than deciding which countries should join the currency and at what exchange rates.

"People issues are less susceptible to objective kinds of solutions," he said.

European Union monetary officials said last week that they were nearing a possible compromise on who would be the ECB's president.The debate started after Paris put forward Bank of France head Jean-Claude Trichet as an alternative candidate to the Wim Duisenberg, president of the European Monetary Institute.

Officials say it is no secret that a majority of the EU's 15 nations favour Duisenberg, a Dutchman.

George said Britain would try to push the process ahead when it took over the EU's six-month rotating presidency in January and he urged European governments to concentrate on the ECB appointments as soon as possible.

"There is a tendency to say we can't discuss that until we know which countries are joining, but the thing (the ECB) has to be up and running by July 1 (1998)," he said."It is not just the decisions on the board people. It inevitably affects the structure of the ECB and you need to have people who are recruited to do particular jobs."

George said there had been an understanding among European central bankers and finance ministers that Duisenberg would get the job. He said the French desire to make their voice heard was "fine so long as they get on with it."

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.