Frankfurt (AFP)

"I have come to the conclusion that after more than 10 years now is the right time to start a new chapter - for the Bundesbank, but also for me personally," writes the chairman of the "Buba" in a letter to employees of the institution.

During his tenure at the Bundesbank, which was not due to end until 2027, Mr. Weidmann was unable to prevent Germany's loss of influence over euro-zone-wide monetary policy by the European Central Bank (ECB).

The announcement of his departure also comes as Germany is about to turn the page Angela Merkel, to which was linked the career of this central banker who embodied the country's obsession with the fight against inflation.

The reluctance expressed by Mr. Weidmann for a long time in the face of the expansionist course taken by the ECB under former President Mario Draghi, are still felt at the time in his letter of departure:

In the future, it will be "crucial (...) not only to consider the risks of deflation, but also not to lose sight of the potential inflation risks", which suggest a more restrictive monetary policy, writes- he in his mail.

Mr. Weidmann has already been pleading for several months for the ECB to consider tightening the credit screw after deploying an arsenal of exceptional support measures in the face of the coronavirus crisis.

He is also worried about a lasting surge in inflation in the euro zone that Christine Lagarde's institution considers temporary for the moment.

He pleads in his letter so that "monetary policy respects its narrow mandate and does not allow itself to be carried away by fiscal policy or the markets".

The President of the ECB, Christine Lagarde, "respects" but "also greatly regrets" the departure of Mr. Weidmann to leave, she said in a statement from the institution.

The Frenchwoman praises in particular the "will to find a compromise" with the German banker, which was manifested recently when the ECB debated then adopted a new strategy.

German President Walter Steinmeier has yet to endorse Mr Weidmann's request to be removed from his post.

His or her replacement will be appointed after agreement within the German government.

However, the surprise announcement comes in the midst of discussions between the three winning parties in the last parliamentary elections in September in Germany, the Social Democratic Party (SPD), the Greens and Liberals of the FDP, with a view to forming a new government that could be more flexible on monetary and fiscal policy issues.

© 2021 AFP