Monday, July 4

Joachim Nagel will be the new president of the Bundesbank

The German economist Joachim Nagel will become from next January 1 in the new president of the Bundesbank, the central bank of Germany, replacing Jens Weidmann, who last October communicated his intention to leave his post at the end of the year.

German Finance Minister Christian Lindner has confirmed that, in agreement with German Chancellor Olaf Scholz, Nagel has been proposed as the next chairman of Germany’s central bank.

“The Federal Chancellor, Olaf Scholz, and I propose Joachim Nagel as the new president of the Bundesbank,” announced Lindner, for whom he is an experienced person who ensures continuity in the Bundesbank.

“In view of the risks of inflation, the importance of a stability-oriented monetary policy is increasing “, added the German Finance Minister in this regard.

Nagel, 55, a former Bundesbank advisor, has served as deputy director of the Banking Department of the Bank for International Settlements (BPI) and previously was a member of the board of directors of the German state development bank KfW.

For her part, the German representative on the executive committee of the European Central Bank (ECB), Isabel Schnabel, whose name had sounded like a candidate to become the first woman to chair the Bundesbank, has congratulated Nagel on her appointment.

“Congratulations to Joachim Nagel for being nominated as the new Bundesbank president. I look forward to our collaboration in the governing council of the ECB. We have many important tasks ahead of us,” said Schnabel through his profile on the social network Twitter.

The arrival of Nagel to the presidency of the Bundesbank coincides with the debate within the ECB regarding how to respond to the rise in inflation, which in November reached 4.9% in the euro area and is expected to be well above 3% on next year, against the ECB’s 2% target.

In this sense, the still president of the Bundesbank, Jens Weidmann, warned last week that the risks to the inflation rate are skewed to the upside, both in Germany and in the euro area as a whole, thus underlining that ” those responsible for monetary policy should not ignore these risks. “

Jens Weidmann requested in October the president of Germany, Frank-Walter Steinmeier, his dismissal on December 31 as president of the Bundesbank, the German central bank, citing “personal reasons” for his resignation from the position he had held since May 2011.

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Weidmann had been appointed by the German government in February 2019 for a second eight-year term as president of the Bundesbank.

The banker became in 2011 and with only 42 years the youngest president of the German central bank, a position to which, the then economic adviser to Angela Merkel, agreed after the sudden departure of Axel Weber when he saw his career for the presidency frustrated of the ECB, once the mandate of Jean Claude Trichet ended, leading to the appointment of Mario Draghi as successor to the French banker.

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