Group game victory? Avid tennis player Joachim Nagel (who has been playing for 40 years) has had many fights at Aschenplatz. Now the financier is supposed to fight inflation and for a strong euro!
The 55-year-old has been nominated by the federal government for a new president of the Bundesbank yesterday, and the cabinet is due to vote on personal details on Wednesday. He will be the successor to Jens Weidmann, who is leaving early for “personal reasons” – he was considered the most important champion of the stable euro within the European Central Bank.
What is he talking about Nagel: He has worked at Bundesbank for 17 years and knows the institute inside and out. Then there were senior positions at the state development bank KfW and in 2020 at the Bank for International Settlements (BIS).
Now he’s back – as president! His colleagues describe him as conservative and polite. And a good network in the banking community!
That’s what matters now. Because Germany’s new top monetary custodian has to start right away. Inflation is at a record high, and zero interest rates are devaluing the wealth of Germans.
Experts warn of a new financial crisis!
And Nagel has strong opponents. First and foremost: Christine Lagarde, President of the European Central Bank. The French lady has been ignoring the explosion of inflation for months and is always printing new money to support heavily indebted countries like Italy or Spain.
Ulrich Kater (DekaBank) warns against underestimating the new head of the Bundesbank. “He’s avoided the spotlight so far, but he’s washed all hands,” he told BILD.
“The European Central Bank has to set itself up as a nail to resist its policy of cheap money, which the member states of southern Europe are particularly interested in,” he says.
The consent of the parties to the traffic lights on the staff is certain: although Nagel has an SPD party book, in one FDP he is sure that “he only has to advance professionally”.
Experts believe that Nagel is the right person
► With Nagel, “An expert with many years of experience with central banks and excellent knowledge of financial markets, comes to the top of the Bundesbank,” said BdB President, Deutsche Bank President Christian Swing.
► Sparkasse President Helmut Schlues expressed his conviction that the German bank, led by Nagel, “will continue its tradition of stability-oriented monetary policy”.
► The head of Germany’s Federal Reserve Bank of Germany and Raiffeisen Banks (BVR), Maria Kolack, linked Nagel’s appointment to the hope that the Bundesbank would act in the Governing Council “for an early termination of negative interest rates in favor of savers”.
When it comes to salary, Nagel now has to settle for even less. In KfW he was earning 451,000 euros a year, as head of the German Bank (Bundesbank) there is “only” 398,663.66 euros.
Consolation: This is much more than what Chancellor Olaf Schultz (242,000 euros) gets…
… the new Bundesbank chief is watching this golden treasure
Not only will Joachim Nagel be Germany’s first monetary guardian – he will also guard the country’s huge gold treasure. A total of 3.3 tons of the precious metal is stored in the vaults of the Bundesbank in Frankfurt, New York and London. Value: 170 billion euros!
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