Bundesbank chief: ECB cannot pursue its own climate policy

Bundesbank President Jens Weidmann
Image: dpa

Weidmann speaks out against the central bank correcting or anticipating the results of the democratic decision-making process.

Bundesbank President Jens Weidmann sees clear limits for the activities of the European Central Bank (ECB) in matters of climate protection. The Governing Council decided in July to incorporate climate protection aspects more strongly into its monetary policy framework, said the head of the Bundesbank of the “Initiative Faces of Democracy” in an interview published on Monday. “But that shouldn’t be confused with our own climate policy. We are not entitled to correct or anticipate the results of the democratic decision-making process of parliaments and governments, ”Weidmann emphasized.

The independence of the central bank serves to be able to provide stable money free of political influences. In return, the mandate was tailored to the primary objective of price stability. “We are not allowed to pursue other goals on our own or play an active role in other policy areas,” said Weidmann. These are decisions that governments and parliaments have to make – without the interference of the central banks. “The mutual influence has clear limits that have to be respected, for example with climate protection,” he added.

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