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Bundesbank boss Weidmann goes: late settlement with the Chancellor

2021-10-20T16:41:09.681Z


It is no coincidence that Bundesbank President Jens Weidmann announced his resignation while Chancellor Angela Merkel was still in office. A comment by Merkur editor-in-chief Georg Anastasiadis.


It is no coincidence that Bundesbank President Jens Weidmann announced his resignation while Chancellor Angela Merkel was still in office.

A comment by Merkur editor-in-chief Georg Anastasiadis.

Many warm words accompany the departure of the outgoing Bundesbank President Jens Weidmann, but this reflects less real regret than great relief.

With his classic understanding of stability-oriented monetary policy, Weidmann stood permanently on the feet of Europe's powerful: He did not think much of saving entire EU states with the help of the banknote press, nor of marching into the transfer union, of negative interest rates and the debt relief of clinging states through currency devaluation, i.e. higher Inflation.

The shadow of Weidmann's withdrawal falls on Merkel's chancellorship

That was also the reason why Chancellor Merkel did not want (and could not) make him successor to Mario Draghi as head of the European Central Bank. The now 53-year-old, who had long been hopelessly isolated in the Governing Council, no longer wanted to serve as a mere fig leaf. It is certainly no coincidence that Weidmann is stepping down during Merkel's term in office: The dark shadow of his withdrawal also falls on her chancellorship because, as the German head of government, she did not oppose the resistance that Weidmann demanded of her to the Italianization of European monetary policy. In the last few meters, the Chancellor is caught up with the consequences of her overly pleasing and ambitious policies: in energy policy, Afghanistan policy and now also European policy.

For the German citizens, the departure of the last German central banker from the DM school is a disturbing, even shrill signal: while the consequences of the European cheap money policy are becoming more and more fatal, an increasingly galloping inflation and negative interest rates are increasingly draining people's savings .

The future traffic light government can look forward to it: it wants to write many new checks that are not covered and hide the debts in shadow households.

Weidmann probably didn't want to stand for that either.

Source: merkur

All news articles on 2021-10-20

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