German Chancellor Angela Merkel nominated Jens Weidmann, her chief economic adviser, to be the next president of the Bundesbank
Weidmann, 42, will replace Axel Weber on May 1st, Merkel told reporters in Berlin today.
Weidmann won coalition approval to become the youngest president of Germany's central bank in its 53-year history.
The announcement was made after Merkel met with her Cabinet ministers today for the first time since Weber's unexpected resignation as Bundesbank chief on February 11th.
European Central Bank head Jean-Claude Trichet's term expires in October.
"Everyone who knows Jens Weidmann knows that he has the highest level of competency, a brilliant intellect and an independent mind," Merkel said.
Sabine Lautenschlaeger, the executive director for banking supervision at the BaFin financial regulator, was nominated as vice president, becoming the Bundesbank first female board member.
An economist and former Bundesbank analyst, Weidmann helped guide Merkel's policy through the financial, economic and euro- area debt crises since becoming her chief economic adviser in 2006 at Weber's recommendation.
He emerged as frontrunner to head the Frankfurt-based German central bank as soon as Weber resigned.
Merkel praised Weidmann's "capabilities, his gifts and his personality," saying it will be "very hard" to see him leave the Chancellery.
"I am convinced that he will be an excellent president at the Bundesbank and a representative for Germany who will raise his voice on behalf of stability culture at the ECB, thus promoting Germany's own interests," Merkel said.
Weber, who will stand down on April 30th, said a lack of "acceptance" among euro-area leaders for his monetary policy views caused him to give up on becoming the next ECB chief, according to an interview in Der Spiegel last week.He suggested Weidmann would make a good replacement, calling him an "absolute professional" and "excellent economist," the German weekly said.
Bloomberg