The Politicians Take Charge at the ECB
Christine Lagarde’s nomination will stir concern about the central bank’s immunity from political influence. She will need to prove her independence.
The European Council has nominated Christine Lagarde to succeed Mario Draghi as president of the European Central Bank. The managing director of the International Monetary Fund has the stature and experience to take on such a crucial role for the future of the euro zone. She has been very supportive of the steps the ECB has taken to rescue the single currency and kick start an economic recovery.
Her nomination, however, doesn’t come without risks. For a start, Lagarde is a lawyer rather than a trained economist, a trait she shares with Jerome Powell, the chairman of the U.S. Federal Reserve. She is also a former politician who served as France’s finance minister. There is a risk the central bank will now be seen as more openly political and, as a result, less independent.