Germany’s new government has tapped Joachim Nagel, a career central banker and supporter of the country’s conservative monetary policy, to take over as head of the Eurozone’s largest central bank, the Bundesbank, at a time of growing concern over inflation.
Mr Nagel, 55, spent 17 years at the Bundesbank, including six years on its board. He most recently worked for the Bank for International Settlements, a financial institution based in Basel, Switzerland, which acts as a bank for central banks.
Mr Nagel will replace Jens Weidmann, who led the Bundesbank for a decade, and will join Isabel Schnabel as one of two Germans on the board of the European Central Bank.
Mr Weidmann, a former financial advisor to Angela Merkel, was one of the most conservative voices on the ECB board, a champion among central bank hawks who preferred strict fiscal policies.
Mr Nagel has ties to Chancellor Olaf Scholz’s centre-left Social Democratic Party, but he is expected to maintain the German’s traditionally tough stance on inflation and an emphasis on market discipline for banks and governments – often with broad policies. opposite happens. European Central Bank.
Last week, the ECB left its interest rate untouched, and the bank’s president, Christine Lagarde, said it was “very unlikely” in the coming year despite rising inflation, which the bank described as driven largely by high energy prices. sees in. ,
Announcing the nomination, Christian Lindner, Germany’s finance minister and member of the Liberal Free Democratic Party, said: “Given inflationary risks, there is increasing importance of stability-oriented monetary policy.” on twitter, He praised Mr Nagel as “an experienced personality who ensures the continuity of the Bundesbank.”