The ruling coalition, composed of conservatives and Greens in Austria, has nominated Economy Minister Martin Kocher to become the next governor of the Austrian National Bank, the government announced on Tuesday.

Kocher is set to replace Robert Holzmann when his six-year term ends on 1st September next year, which will also place Kocher on the European Central Bank’s Governing Council.

Kocher’s nomination requires approval from Austrian President Alexander Van der Bellen, which is anticipated to be a formality.

Kocher had been the favourite for the post for some time, and in a statement he commented he would do the job “with the utmost care and an ongoing clear focus on objectivity, independence and transparency” if confirmed as governor, Reuters news agency reports. 

75-year-old Robert Holzmann, known for his outspoken hawkish stance at the European Central Bank, announced he would not seek re-appointment.

Kocher, an economist specialising in behavioural economics, transitioned from academia to join the current coalition government in 2021 as a conservative. He initially served as labour minister before taking on the economy portfolio in 2022.

Before entering politics, Kocher led the IHS economic think tank and was well-known to the public as an economic expert. As a minister, he has maintained a relatively low-key, centrist, and technical profile, the Reuters report goes on to add.

Furthermore, he has been reserved about his views on monetary policy and what kind of bank governor he might be. As minister, he has remarked that while national governments have limited capacity to tackle inflation, it is primarily the responsibility of the European Central Bank.