July 8, 2019 3:28 pm

Christine Lagarde nominated to be new ECB chief

IMF chief Christine Lagarde will take over from Mario Draghi (71) at the helm of the ECB in November. According to media reports, last Tuesday the heads of state and government of the European Union were ready to nominate the 63-year-old as the new president of the ECB. Lagarde is expected to take up her new post in November this year; Draghi’s term expires at the end of October.

A lawyer by training, she has headed the IMF in Washington since 2011. Previously, Lagarde was Minister of Economy and Finance in France (2007-2011). According to the magazine “Forbes”, the French woman is the third most powerful woman in the world – after Angela Merkel and Theresa May.

According to a FAZ report, the competence of Lagarde is undisputed among experts. She counts among the camp of the “doves”, i.e. the representatives who stand for a looser monetary policy. It is generally expected that Lagarde will continue the ECB’s course of cheap money. The announcement also generated a lot of enthusiasm on the stock exchange: the following day, the DAX promptly shot up and jumped over the 12,600-point mark.

At the same time, critics of the 63-year-old accuse them of expressing their opinions at the time in connection with the euro crisis. After the outbreak of the debt crisis, Lagarde took part in the fomenting of the rescue loan packages for Greece, which are sometimes seen as a violation of the so-called “no bailout” clause. According to the clause, no EU member state is liable for the debts and liabilities of another member state.

Lagarde will suspend her office as IMF chief until the elections in autumn. Who, on the other hand, will take her position at the head of the IMF is still unclear. Traditionally, the office has been filled by a European. FAZ; n-tv

This post was written by Jens Secker

(Image rights: istockphoto.com/kontrast-fotodesign)

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