The German government is tipped to nominate Ernst Welteke today as the next head of the country's central bank - a choice which could spell increased competition between London and Frankfurt in the battle to be Europe's top financial centre.
Mr Welteke, head of the central bank of the state of Hesse, which takes in Frankfurt, is seen as the front runner because of his membership of Chancellor Schroder's Social Democratic Party. He is known to be close to new finance minister Hans Eichel.
He is expected to be nominated at a cabinet meeting this morning and the recommendation discussed by the Bundesbank council tomorrow.
He will then take over as Bundesbank president from Mr Tietmeyer when the latter retires at the end of August but he will be stepping into a role vastly different from that of any previous Bundesbank president.
When Mr Tietmeyer was appointed, the Bundesbank was the arbiter of European interest rates and his main role was seen as ensuring that Germany signed up for monetary union on the right terms.
