Joining the chorus of European finance chiefs in praising Christine Lagarde’s candidacy for the ECB’s top job was the former head of the European Central Bank (ECB).
Jean-Claude Trichet managed the Frankfurt-based central bank from 2003 to 2011.
Also, a French economist said regarding Lagarde’s experience in France as finance minister as well as being the managing director of the International Monetary Fund for eight years created “very, very good training.”
On Tuesday in Brussels, many of the European finance and economy chiefs copied his solid endorsement.
A news report interview descrtiped Lagarde as “the one,” by Croatian Finance Minister Zdravko Maric. Besides, he said, “an expert, not only as a politician,” referring to how she operated the bank.
The ECB was described as a “rocket science institution,” by a Lithuanian counterpart, Vilius Sapoka. Moreover, she said, the unique institution requires someone with the “necessary skills.”
He also said in a news report, “And I think in this regard, Lagarde is qualified.”
Meanwhile, in a statement, Lagarde said Andrej Bertconcelj would make an “excellent governor” of the ECB.
It is because he is an international financial expert with an excellent track record. Currently, he is the head of the Finance Ministry in Slovenia.
Lithuania Sapoka warned and said, “You cannot ignore changes in the whole economic, monetary environment.”
Furthermore, “but I do believe that the continuity will be ensured.”
European governments warned with fiscal policies, and they should renew their focus.
There is a need to inspire and sustain growth rates across the trading bloc because, since the 2008 financial crisis, they have seen to be in sluggish growth.
It is particularly in comparison to the U.S. or China.
Whoever is at the control with a European Central Bank will always have its limits.
He said, “If we just expect that somebody in a huge building,” adding “somewhere in Brussels or Frankfurt will solve all your problems, it’s an illusion.”
ECB President: EUR/USD Rate Drops as Lagarde Nominated
As traders speculated that Lagarde would run ECB, the euro pulled back across the board.
In replacing Mario Draghi, Former French Finance Minister and current International Monetary Fund Managing Director and Chairwoman Christine Lagarde was nominated as the next ECB president.
Seating as the next ECB president, all signs point to Christine Lagarde even though the nomination does not guarantee to escalate.
With her capacity in recent months being the IMF Managing Director and Chairwoman, Lagarde reduced the IMF’s global growth forecasts.
It’s possible to describe the situation as a “delicate moment” for the global economy.
As the Eurozone growth weakens and inflation expectations shrink, it would appear that Lagarde will be well-informed.
The restriction will be taken from Draghi and continue the accommodative policies of ultra-low rates and asset purchases if necessary.
Lagarde, with the need for the ECB to remain active on the stimulus front, is very familiar. Over the past years, criticism came in for the lack of fiscal reform.
Accordingly, accommodative policies that would end the era have was ruined with any hopes from the next ECB president.