German economist Joachim Nagel on February 24, 2016 in Frankfurt (dpa / AFP / Archives / Arne Dedert)
German economist Joachim Nagel has been proposed by Olaf Scholz’s government to lead the Bundesbank to replace the current resigning President Jens Weidmann, Finance Minister Christian Lindner said on Monday.
“He is an experienced personality who ensures continuity” at the Bundesbank, the minister said in a tweet.
Joachim Nagel, 55, is familiar with the central bank where he worked for seventeen years. Close to the Social Democratic Party (SPD), he is considered a compromise candidate for the “Buba”, of which Mr. Weidmann will leave the leadership on December 31.
This is one of the first major appointments of Social Democratic Chancellor Olaf Scholz, who came to power in December at the head of a coalition with the Greens and the Liberals of the FDP.
Mr Nagel’s official appointment, expected in the coming days, comes at a tense time for the Bundesbank, as inflation soars in Germany, to over 5% in November, above the average observed in euro zone, and well beyond the 2% target set by the European Central Bank (ECB).
“Faced with the risk of inflation, the importance of a monetary policy focused on stability is growing,” also tweeted Mr. Lindner, leader of the liberal party and supporter of fiscal and monetary orthodoxy.
Jens Weidmann, influential member of the board of governors of the European Central Bank and figure of monetary orthodoxy, will leave his post well before the end of his mandate and at a key moment for the future of European monetary policy.
His term, the second since 2011, should not have ended until 2027.
Regularly outnumbered lately on his intransigent line, he announced his departure in October, citing personal reasons.
© 2021 AFP
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