EU backs Papademos for ECB post

LUXEMBOURG (Reuters) -- European Union foreign ministers on Monday backed the nomination of Greece's Lucas Papademos as the next vice president of the European Central Bank, diplomats said.

"They backed the nomination without any objections," a diplomat told Reuters in Luxembourg as the 15 foreign ministers began a monthly meeting.

Belgium agreed not to push its own canditate, Paul De Grauwe.

Under EU rules, the foreign ministers were required to give their formal blessing to a decision taken in Spain at the weekend by EU finance ministers. Monday's move marks the first formal step in a process which also requires the approval of the European Parliament.

Papademos, who has worked in the United States at the Boston Federal Reserve and as a lecturer in economics, had been widely expected to beat off competition from his Belgian rival, Paul De Grauwe, an academic and politician.

It will be the first change of leadership on the board of the ECB since its birth four years ago when it became responsible for setting interest rates in the 12-nation euro

zone. Papademos will replace Frenchman Christian Noyer, who steps down at the end of May after a four-year term as ECB vice president.