Former Managing Director of the International Monetary Fund (IMF), Christine Lagarde, has been inaugurated as President of the European Central Bank (ECB).
"My sincere thanks to European leaders for appointing me as President of the ECB... It is an honour to succeed Mario Draghi. I am looking forward to working with the ECB’s talented staff to keep euro area prices stable and banks safe," Lagarde said.
Replacing outgoing head Mario Draghi, Lagarde will face a daunting task in steering the European bank and meeting the ECB’s inflation target “below, but close to, 2%.”
With many of Europe’s economies showing signs of stalling, interest rates are already near a minimum leaving Lagarde little wiggle room. The central bank is resuming its bond-buying program, but quantitative easing hasn’t been as potent as hoped.
The ECB also faces opposition from the German, with Jens Weidmann president of the Bundesbank, warning against ECB legislation that would "overburden" policy,
“I see demands for a green monetary policy, for example in the form of a ‘Green QE’ or a targeted privilege within the collateral framework, very critically," Weidmann said.
“Such decisions should not be made by central banks, because they are not democratically legitimised. Lagarde has been appointed by the European Council for a term of office of eight years.
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