The European Union has confirmed that Mario Draghi, an Italian, will be the next president of the European Central Bank, replacing Jean-Claude Trichet whose term ends in October.

The announcement of Draghi's appointment gives investors some certainty over who will lead the ECB as Europeans seek to resolve Europe's crippling debt crisis.

The EU said Friday that Italian ECB executive board member Lorenzo Bini Smaghi has agreed to step down from his post by the end of the year to make room for Draghi. France had objected to having two Italians on the board.