Germany’s representative on the European Central Bank’s executive board has left in light of the decision to reintroduce quantitative easing (QE), the Financial Times reports.
Sabine Lautenschlager joined the ECB executive board five years ago on an eight-year term. Recently she was replaced as vice-chair of the supervisory board of the ECB’s Single Supervisory Mechanism, which supervises the eurozone’s biggest banks, after a five-year term.
Her departure points to a widening split in the top echelons of the Eurozone and raises further concerns as to who Germany will move to replace her in an environment of excessively low interest rates.
Such excessively low interest rates are proving controversial within Germany. A previous representative to the ECB quit eight years ago, while only a few months ago Axel Weber, head of Germany’s Bundesbank, quit in opposition to the ECB’s loose economic strategy.
The ECB responded to Lautenschlager’s departure, stating:
President Mario Draghi thanked her for her instrumental role in helping set up and steer Europe-wide banking supervision, a key pillar of banking union, as well as her unwavering commitment to Europe.
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