It is ultimately the economist Joachim Nagel who will be proposed by the government to head the German Central Bank, the Bundesbank. Close to the SPD, the party of Chancellor Olaf Scholz, Joachim Nagel succeeds Jens Weidmann, a supporter of monetary orthodoxy. This appointment will have repercussions on the euro.
With our correspondent in Berlin, Nathalie Versieux
Joachim Nagel, 55, is a member of the Social Democratic Party of the new Chancellor Olaf Scholz. He worked for 17 years at the German Central Bank. It should embody Germany’s more flexible line in terms of monetary policy, in response to the expectations of Berlin’s partners, especially the highly indebted southern countries.
This is one of the first appointments by Olaf Scholz, and it will have repercussions on monetary policy within the euro area. The President of the Bundesbank is in effect a seat on the Board of Governors of the European Central Bank.
Replaces the orthodox Jens Weidmann
Due to the economic weight of Germany, the head of the Bundesbank, the German Central Bank, is even one of the heavyweights of this body which manages the monetary policy of euro countries.
The outgoing, orthodox Jens Weidmann, was regularly outvoted by his peers for his intransigent stance in the current context of rising inflation. Its inflexibility had given Germany the image of an intransigent partner, ignoring the interests of its allies.
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