Economics – Conciliator-In-Chief
Bloomberg Businessweek|November 11, 2019
Can Christine Lagarde heal the rifts at the European Central Bank left behind by Super Mario?
By Jana Randow and Sandrine Rastello, with Viktoria Dendrinou and Helene Fouquet
Economics – Conciliator-In-Chief

Christine Lagarde received two gifts when she took over the presidency of the European Central Bank on Nov. 1, both temporary and both from Mario Draghi. The first was ceremonially presented to her by the outgoing ECB president: a golden bell used to call the bank’s policymakers to order. The second was the fresh round of monetary stimulus Draghi pushed through in his final weeks. This should put off the next decision on whether to raise interest rates—always politically fraught—until at least 2022.

That may sound like the promise of a smooth transition, but it’s not. Already, Lagarde’s leadership skills are being tested by two other things Draghi is leaving behind: rifts among ECB policymakers brought on by unhappiness over his final round of pump-priming and their mounting concern that the central bank’s efforts to revive the eurozone economy are being undermined by stingy national governments.

Lagarde, 63, is the ECB’s first female president, but then again she’s been shattering glass ceilings throughout her career. She was also the first woman to head the International Monetary Fund and France’s first female finance minister. Before that, she spent two decades as a lawyer, rising to become chairman of the Chicago-based firm Baker McKenzie.

Now, Lagarde will oversee the world’s second-biggest currency in a diverse, 19-nation economy for which a single monetary policy sometimes seems an ill fit. While members of the decisionmaking Governing Council attend as Europeans, not as representatives of their country, they inevitably bring views rooted in their cultural history.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BLOOMBERG BUSINESSWEEKView all
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 mins  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 mins  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 mins  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 mins  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ mins  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ mins  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 mins  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 mins  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 mins  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 mins  |
March 20 - 27, 2023