ZCZC
BCN-10
EU-ECB-ECONOMY-LAGARDE
European Parliament approves Lagarde as next ECB chief
STRASBOURG, France, Sept 17, 2019 (BSS/AFP) – The European Parliament on
Tuesday approved outgoing IMF chief Christine Lagarde as the next boss of the
European Central Bank, which last week announced massive stimulus for the
sluggish eurozone despite divisions among its governors.
Lagarde, who was absent for the vote, won backing from 394 MEPs, with 206
voting against and 49 abstaining in a secret ballot. Some criticised her not
turning up.
The parliament’s green light is just a recommendation. The final decision
on her appointment is up to EU leaders in a mid-October summit. She is
expected to easily clinch that confirmation as the leaders put her forward
for the ECB post back in July.
Lagarde, a former French economy minister and head of the International
Monetary Fund for the past eight years, is expected to largely follow the
course set by departing ECB president Mario Draghi.
Draghi was hailed seven years ago for saving the eurozone from debilitating
crisis by vowing “the ECB is ready to do whatever it takes”.
But his decision last Thursday to have the ECB intervene again with
quantative easing (QE) from November and a cut to the interest paid on banks’
deposits deeper into negative territory has ruffled the feathers of some EU
states.
Germany and the Netherlands notably accused Draghi of going too far.
Sources told AFP that around 10 of the 25 ECB governors were against
relaunching QE.
Draghi had underlined three challenges facing the ECB and its goal of price
stability: a slowing eurozone economy, looming trade protectionism and
Brexit, and the bank’s degrading economic forecasts.
He is to leave his job to Lagarde after hosting a last monetary policy
meeting in October.
The euro, a symbol of Europe’s single market, is used by 19 of 28 member
states currently in the European Union.
BSS/AFP/SR/2000 HRS