Schaeuble Presses Lagarde on ECB Mandate Limits

Wolfgang Schaeuble, former German finance minister, has called on new European Central Bank President Christine Lagarde to respect the ECB's 'limited mandate'. In an interview with Reuters, Schaeuble expressed his expectation that Lagarde will implement a 'very sensible' monetary policy. He emphasized the importance of respecting the limits of the ECB's mandate, which he believes is essential for maintaining its independence in democratic terms.

Schaeuble, who has been critical of the ECB's ultra-loose monetary policy, highlighted his personal ties with Lagarde, whom he worked closely with during the euro zone debt crisis. He praised her broad international experience and expected her to pursue a powerful monetary policy.

However, Schaeuble also underscored the need for the ECB to adhere to its limited mandate, which has been a point of contention among German savers and other northern euro zone countries. Critics have accused the ECB and former President Mario Draghi of stretching and overstepping their authority with sovereign bond-buying programs.

Schaeuble's comments reflect the ongoing debate about the ECB's role in managing the euro zone economy. His remarks also echo the sentiments expressed by senior German conservative lawmaker Alexander Dobrindt, who urged Lagarde to reverse Draghi's policies and turn her focus towards interest rates.