A French prosecutor has recommended that the head of the Bank of France Mr Jean-Claude Trichet, tipped as the next president of the European Central Bank, should not be tried in the Credit Lyonnais bank scandal.
The Paris prosecutor's recommendation must still be accepted by the investigating magistrate heading a probe into the scandal before the path would be clear for Trichet to succeed ECB chief Wim Duisenberg of the Netherlands next year as planned.
The news was seen as positive for Trichet, who has long been heir apparent to Duisenberg, who is due to step down in mid-2003. The threat of being tried in connection with the bank scandal clouded his prospects.
Trichet was put under official investigation in mid-2000 as part of a vast judicial inquiry into the near demise of Credit Lyonnais and an alleged cover-up of huge losses 10 years ago while he was director of France's treasury.
Credit Lyonnais was state-owned at the time and the job of treasury director included keeping tabs on the finances of all French state-owned groups.
The ultimate decision on whether there is a trial lies in the hands of investigating magistrate Philippe Courroye. Legal experts say there is rarely a conflict between the stand taken by public prosecutors and investigating magistrates.