GERMANY: WEIDMANN LEAVES BUNDESBANK PRESIDENCY AT THE END OF THE YEAR
Bundesbank chief Jens Weidmann has asked German President Frank-Walter Steinmeier to resign from office as of December 31 this year. This is a surprise change.
Weidmann resigns as Bundesbank presidency “for personal reasons”
He will leave the Bundesbank, which he has headed since May 2011, for personal reasons. “I have come to the conclusion that more than 10 years is a good time to turn the page, for the Bundesbank, but also for me personally,” Weidmann wrote in a letter to the bank staff.
In words of thanks to the staff, Weidmann referred to the results achieved: “The environment in which we operate has changed massively and the tasks of the Bundesbank have increased. The financial crisis, the sovereign debt crisis and more recently the pandemic. have led to policy and monetary policy decisions that will have lasting effects. It has always been important to me that the clear and stability-oriented voice of the Bundesbank remains highly audible. With great expertise, the departments have contributed to discussions on the right lessons to draw from the crisis and on the monetary union framework. Major regulatory changes have been adopted. The reorganization of banking supervision in Europe has not only led to completely new supervisory structures at the ECB, but also to a strengthened role for the Bundesbank. responsibilities of the Bundesbank in the area of financial stability also underline and our central role when it comes to a functioning financial system. “
Weidmann then thanked colleagues on the Governing Council of the ECB under the leadership of Christine Lagarde for the open and constructive atmosphere in the sometimes difficult discussions of the past years and underlined the important stabilizing role of monetary policy during the pandemic, as well as the successful conclusion of the strategy review as an important milestone in European monetary policy. Weidmann pointed out that the Bundesbank confidently contributed, with its analytical expertise and core beliefs, to the recently concluded review process. “A symmetrical and clearer inflation target has been agreed. Side effects and in particular the risks of financial stability must be taken into greater consideration. A targeted overshooting of the inflation rate has been rejected”, he said. Weidmann. Looking to the future, he stated that now it will depend on how this strategy is “lived” through concrete monetary policy decisions. “In this context, it will be crucial”, continued Weidmann, “not to look unilaterally at deflationary risks, but not even to lose sight of the potential inflationary dangers. A stability-oriented monetary policy will only be possible in the long term if the regulatory framework Monetary Union will continue to guarantee unity of action and responsibility, monetary policy will respect its narrow mandate and will not be caught in the wake of fiscal policy or financial markets. personal conviction, as well as the great importance of the independence of monetary policy “.
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