The president of the German central bank, Jens Weidmann, unexpectedly announced his early departure on Wednesday. Weidmann has asked German Federal President Frank-Walter Steinmeier to resign him by the end of this year, the statement said. Bundesbank Wednesday known.
Weidmann, who has headed the bank since 2011, is leaving for “personal reasons,” the press release said. It is unclear which these are.
Weidmann, also one of the 25 board members of the European Central Bank, has been regarded as the most outspoken and persistent critic of the ECB’s loose monetary policy in recent years. This policy is characterized by very low interest rates and large-scale purchases of government and corporate debt.
As the ECB board has increasingly taken majority decisions, Weidmann was unable to stop the major decisions he rejected. In 2015, for example, he objected to the start of the asset-buying program, but the ECB government, then led by the Italian Mario Draghi, persevered. Weidmann often spent time with his Dutch colleague Klaas Knot, president of De Nederlandsche Bank, although the latter was sometimes more accommodating than Weidmann.
Lagarde ‘regrets’ departure
In the press release, Weidmann thanked his colleagues on the ECB board led by Christine Lagarde for the ‘open and constructive atmosphere’ in which the ‘sometimes difficult discussions in recent years’ have been held. Weidmann maintained a tense relationship with Draghi, his relationship with current ECB president Christine Lagarde was considered better. Weidmann broadly supported the massive monetary support given by the ECB under Lagarde during the corona pandemic.
Minutes after the announcement of Weidmann’s departure, the ECB issued a press release detailing Lagarde’s response. She says she “respects” his decision, but also “greatly regrets it”. “Jens had clear views on monetary policy, but I was always impressed by his search for common ground on the board,” Lagarde said.
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