FDP against change of course when looking for the top of the Bundesbank

Released on 21.10. 2021

  • After Weidmann resigned as head of the Bundesbank, the FDP insisted on maintaining the previous course. Photo: Nicolas Armer

Already heard?

You can now also have your messages read out to you. Simply click on the play symbol in any article or add the article to your personal playlist using the plus symbol and listen to it later.

Listen to the article:

The new federal government is not yet in place, but one of the first tasks is likely to be to decide on the appointment of a new head to the Bundesbank. This indicates differences between the FDP and the Greens. 2021

Berlin (dpa) – The FDP insists on maintaining the current course of the monetary watchdog when replacing the top of the Bundesbank.

Jens Weidmann was a strong central bank chief, who saw “the increasing politicization of central banks” as critical as the ultra-loose monetary policy, said financial politician Florian Toncar of the German press agency. “I would like to see a certain continuity in the future.” The CDU demanded on Thursday that Weidmann’s successor must work with the same determination for monetary stability.

The 53 – year old surprisingly announced his resignation on Wednesday after ten years at the top of the Bundesbank. As a member of the Council of the European Central Bank, Weidmann had warned for years against an excessively loose monetary policy, which, according to critics, could lead to higher inflation. The new federal government should decide on a successor.

Question about the post of finance minister

The FDP wants the next one, together with the SPD and the Greens Form a coalition and hope for the post of finance minister, which has so far been the SPD’s top candidate, Olaf Scholz. The liberals could play an important role because the ministry is likely to have a great deal of influence over the federal government’s proposal. The Federal President is formally responsible for the appointment. FDP boss Christian Lindner had already called on Wednesday: “The Deutsche Bundesbank must continue to advocate a stability-oriented monetary policy in Europe.”

The coalition negotiations between the three potential governing parties will begin on Thursday. Green leader Robert Habeck, who has also been brought into play by party colleagues as the new finance minister, praised Weidmann for his great commitment. At the same time, he spoke in the “Süddeutsche Zeitung” of “differences in content” and demanded: “For the future, we need a Bundesbank that can respond to the challenges of the time.”

Resignation of Weidmann’s “fatal signal”

Union parliamentary deputy head Carsten Linnemann described Weidmann’s resignation as a “fatal signal” in what was already a fragile phase in monetary policy. «Weidmann was able to assert itself less and less against the ECB, which is geared towards monetary expansion. This rate contributes to the currently rising prices », said Linnemann of the dpa. gone up. Higher inflation means that consumers’ money is depreciating more quickly. According to their own words, leading ECB representatives assume that the accelerated inflation will pass. The monetary authorities are actually aiming for an annual rate of 2 percent.

The Bundesbank President decides on monetary policy in the Council of the ECB. With his criticism of the ultra-loose course, Weidmann is representative of a minority in the committee.

Related Articles

Back to top button