Weidmann’s successor difficult test ahead German economy

Bundesbank president Jens Weidmann has thrown an additional wild card on the negotiation table for Germany’s economy after Merkel’s last term in office.

After 10 years opposing the ECB’s loose fiscal policy,the German economist announced his departure on Wednesday for personal reasons. Last month’s election pushed has pushed Dr Weidmann out because he began to sees himself out of step as he ran out of any further road to go with any new government under the leadership of the Social Democrats.

The tensions around Europe’s currency union dates back before Dr Weidmann became Governor. Germany’s central bank repeatedly criticized the ECB governing council on unconventional crisis measures including sovereign bond buying.

That tension remained with Dr Weidmann – and was exacerbated when former ECB president Mario Draghi promised in 2012 to do whatever it takes to preserve the crisis-hit euro.

Four years ago, he warned that the ECB must make a clean breast of its expansionary exit to dispel crisis-era doubts over its political independence.

Dr Weidman feels vindicated with his warnings but sees no political perspective to continue his lonely monetary protest in Frankfurt.

Rumours that Berlin will soon be more aligned with the ECB and Brussels would, in that case, prove greatly exaggerated.