CHANCELLOR ANGELA Merkel will announce the name of the new Bundesbank president next week, just as soon as her officials can find a suitable candidate.
Bundesbank president Prof Axel Weber ended days of speculation by confirming yesterday that he was standing down for “personal reasons” on April 30th, a year early. Consequently, Prof Weber will not be Berlin’s nomination to head the European Central Bank (ECB) from the autumn.
“With respect for Prof Weber’s personal reasons, the chancellor and finance minister [Wolfgang] Schäuble have taken note of the decision,” said Steffen Seibert, Dr Merkel’s spokesman.
“No one in Germany or abroad should be worried that such an important institution like the Bundesbank will be allowed slip in carrying out its tasks,” he added. “Two days of ambiguity haven’t changed that.”
Economics minister Rainer Brüderle expressed regret at the departure of Prof Weber, seen as an inflation-fighting “hawk”.
“He represented a monetary policy oriented [approach] toward price stability” that had “stabilised the indispensable confidence of business and citizens in inflation-free growth,” said Mr Brüderle. “He helped shape the course of the ECB in situations that were not always easy and deserves respect and thanks for that.”
Mr Schäuble played down succession speculation, saying Berlin was not obsessed with the nationality of the successor to ECB president Jean-Claude Trichet.
Speaking after talks in Berlin with French counterpart Christine Lagarde, Mr Schäuble insisted Berlin and Paris were concentrated on agreeing a “comprehensive package” of reform measures for the euro zone.
“Germany has never insisted that the next ECB president be a German,” said Mr Schäuble. “What we want now is to solve the question of institutional reform in the euro group. Once that’s solved we’ll discuss the question of who is the best [ECB presidency] candidate.”
Germany and France want a “pact for competitiveness”, including tighter co-ordination of economic and social policy, from EU tax rates to retirement age. Mrs Lagarde said other European partners were welcome to make proposals and that the aim of Franco-German plan “is to include as many European partners as possible”.
She added: “We are working scrupulously hard so that we can present a complete package on March 11th. We are making good progress on many chapters. But all have to agree on everything.”
Mr Schäuble agreed, saying Berlin was not interested in discussions on individual measures, saying “everything is connected to everything else”.
The French national bank governor, Christian Noyer, also in attendance, said the package was essential for efficient monetary policy.
“We need economic governance that works, we need defined fiscal policy if we are to make progress,” he said. “If everyone in Europe does what they want then there is no coherence. We need a monetary policy that works in all regions.”
