According to information from the Süddeutsche Zeitung "and the Reuters news agency, the German government wants to nominate Professor of Economics Isabel Schnabel for the vacant position on the Executive Board of the European Central Bank (ECB), according to Finance Minister Olaf Scholz (SPD) According to reports, the proposal is coordinated with Chancellor Angela Merkel (CDU) and Interior Minister Horst Seehofer (CSU).
A spokeswoman for the Ministry of Finance did not comment on the reports. However, two other sources, including one close to the ECB, confirmed the information. The 48-year-old Schnabel is one of the federal government's economic systems. She is considered an expert in monetary policy. The research priorities of 48-year-olds include banking regulation and financial crises.
Schnabel is due to follow in the ECB's Governing Board Sabine Lautenschläger, who recently announced that she will be leaving the Board prematurely on 31 October. In addition to ECB President Mario Draghi, the panel includes five other members. Together with the 19 national central bankers of the euro countries, they form the Governing Council of the ECB, the central bank's main decision-making body, which sets out the monetary policy stance in the euro area.
The reason for Lautenschläger's withdrawal was apparently disagreement over the ECB's ultra-loose monetary policy, notably the recent interest rate decision by the central bank and the resumption of multi-billion dollar bond purchases. According to their announcement, the Ministry of Finance said that Germany would once again seek to fill the post with a German candidate. The new board member is then appointed after a hearing before the European Parliament by the European Council. Schnabel will be joined by Christin Lagarde, who will soon succeed Draghi, and a second woman on the ECB's governing body. So far Lautenschläger was the only woman there.
Criticism from the FDP
Schnabel has gained research experience at numerous international universities, including the US elite universities Berkeley and Harvard and the London School of Economics. Since 2014, she sits in the Expert Council for the Assessment of Macroeconomic Development, which advises the Federal Government. A year later she took over the professorship at the University of Bonn, after she had previously taught in Mainz. The scientist is considered one of the most influential representatives of the German economy.
Like Lautenschläger, Schnabel has openly criticized the monetary easing policy of the ECB. On the other hand, she also criticized that the ECB is constantly being made the scapegoat in Germany. She also called for the independence of the ECB to be respected.
Criticism of the personality Schnabel came from the FDP. With their nomination, the government adds "the previous majorities within the ECB," said the financial expert Florian Toncar AFP news agency. "Necessary and right" would have been the suggestion of one person "fighting out of conviction for another monetary policy," he added. The current measures of the ECB are a "danger to retirement provision, the stability of the financial system" and ultimately the credibility of the ECB.