September 12, 2011
The chief economist of the European Central Bank, Jürgen Stark, resigned on Friday, apparently over his opposition to the ECB's bond-buying program. The loss is embarrassing for Chancellor Angela Merkel, coming just months after the resignation of Axel Weber as Bundesbank president.
Shortly after his resignation as chief economist of the European Central Bank (ECB) on Friday, Jürgen Stark carried on as if nothing had happened, taking a group of visitors on a tour of the Eurotower in Frankfurt.
In its official announcement, the ECB cited "personal reasons" for the step. For a top central banker, however, personal reasons are always professional reasons as well. It was known that Stark had long questioned the policy of the ECB and its president, Jean-Claude Trichet, involving the purchase of large quantities of the government bonds of ailing euro-zone countries. He had trouble hiding his aversion to the Frenchman's approach. According to a friend, Stark made his decision to resign in early August, when the majority of the ECB governing council voted for the purchase of Italian and Spanish government bonds.
Trichet and his staff were dismayed when Stark announced internally that he intended to resign. They urged him to at least stay on until the ECB council meeting last Thursday. But then Trichet used the press conference following the meeting for a theatrical tirade against the inflexible Germans.
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