The outgoing ECB chief, Mario Draghi, leaves at the end of his eight years in office, a more closely welded currency Union, but also in the monetary policy sharply divided Central Bank. His successor, Christine Lagarde, the on 1. November takes the helm, has a difficult task to smooth the waters.
“The choice of Madame Lagarde was a good decision, because obviously now needed diplomatic skills in dealing within the ECB, as well as in dealing with governments,” says the former Austrian Central Bank Governor Ewald Nowotny.
disagreement with Draghi
critics hold Draghi, to have differing positions are often simply wiped out. In addition, he was inclined to meet in public appearances before taking important monetary policy decisions strong Preconceptions. This disagreement among the Euro-guards fomented with the aim of its interest-rate meeting is traditionally a strong consensus. Draghi and the ECB rejected opinions.
The biggest feud there was, of all things, on Draghi’s last interest rate meeting in September. At that time, the European Central Bank (ECB) to handle even very deep in your tool box. The governing Council decided, because of the economic weakness of a large package of measures to support the economy, including the resumption of the billion heavy bond purchases counted.
However, around a third of the Euro-guardians of cared after all, and was against the reboot. “Mario is willing to live with 50 percent plus one vote,” says a Central banker. “Christine (Lagarde), this must change.” to be interviewed
After its last interest rate meeting, the dispute, said the head of the ECB, that there is in the discussion of monetary policy decisions are always dissenting opinions. And often they came also to the Public. From the point of view of Draghi’s allies will also have more discussions within the ECB, would have led to a different result.
In the days after the September decisions had, in addition to Bundesbank President Jens Weidmann, the Central Bank chief Klaas Knot (Netherlands) and Francois Villeroy de Galhau (France) your criticism of Parts of the package made public. The dissent was so strong that Villeroy de Galhau called in October, as a matter of urgency, to leave the conflict behind and to look forward. A guardian of the currency, complained: “The vociferous objections have weakened the confidence in our determination. Therefore, you will have damaged in fact, of monetary policy.”
Many felt blindsided
in June, had excited discontent in the ECB-to-peak, as Draghi, in a speech at the stock markets, the expectations stirred up, the Central Bank will loosen its monetary policy once again. Many policymakers felt at the time, caught off guard. “When you start to communicate before a session, others feel pushed into a corner and want to Express yourself,” says the Belgian Central Bank chief Pierre desire. “So then you have a session prior to the meeting.” He had support in September, the package of measures.
in the action Complained of also Draghi’s big decisions with a small circle of advisers to prepare and the governing Council of the ECB late to be included. Proposals for the Stimulus package were distributed in September until the Morning of the interest-rate meeting. This was done mainly to prevent the Details directed in advance to the Public. According to critics, this is a restricted but at the same time the space for discussion – especially since the final proposal was more ambitious than many expected.
Draghi’s successor to Lagarde announced already, to the dispute over the recent easing steps to overcome. “I’m always looking for the common Basis of the different opinions together,” she told the news magazine “der Spiegel”. Your proposal: “We should focus now on how we will be able to find a common line.” (SDA)