Don't let Merkel win tussle for ECB job, German economist says

Bundesbank chief Jens Weidmann shouldn’t succeed European Central Bank President Mario Draghi, and no other German ought to get the job either, according to Centre for European Reform Chief Economist Christian Odendahl. In a report that he quips may cost him his German passport, the Berlin-based analyst argues that Weidmann is “too conservative” for a role that might require bold action, while the region’s most populous country and biggest economy already has enough influence in the running of the euro area.

“Germany already dominates euro zone policy making through its veto on further reforms and on the use of the main bailout fund, the European Stability Mechanism,” said Odendahl. “To appoint a German to lead the ECB would be a step too far.”

Weidmann in particular would be a mistake because of his past outspoken opposition to Draghi’s policies, including the audacious crisis-fighting tool known as Outright Monetary Transactions created by the ECB president that then stemmed the region’s sovereign-debt turmoil, Odendahl argues.

The Bundesbanker is the most controversial candidate vying to succeed Draghi at the end of October. Bank of France Governor Francois Villeroy de Galhau, ECB Executive Board member Benoit Coeure, Bank of Finland Governor Olli Rehn and his predecessor, Erkki Liikanen, are all in the running too. European Union leaders including German Chancellor Angela Merkel will begin formal discussions on the matter next week.