Jens Weidmann has decided to step down after nearly ten years as Germany’s central bank chief. This move comes weeks before a critical decision on the future of the Eurozone monetary policy.
- Since joining Bundesbank, Weidmann has been a major critic of the ultra-loose monetary policy adopted by the European Central Bank, where he fought alone against its bond-buying and negative interest rate policies.
- In a letter, Weidmann informed Bundesbank employees that he decided to quit at the end of the year, noting it is a good time to start a new chapter for Bundesbank.
- The decision comes as German political parties are deadlocked in negotiations to form the country’s first three-party ruling coalition government since the 1950s.
Before his appointment to head the Bundesbank in 2011, Weidmann worked as an advisor to Chancellor Angela Merkel. Merkel’s center-right Christian Democrat party suffered the worst-ever defeat in last month’s election.
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Source: FT
