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By effectively committing the central bank to action at its next monetary policy meeting on July 25, Draghi may have reassured financial markets that economic stimulus would last long after his resignation.
His remarks could be seen as a sort of preventive strike in case his successor turns out to be a conservative like Jens Weidmann, a member of the German Governing Council who is considered a leading candidate. Weidmann, who was in the courtroom on Tuesday, is perceived as less willing to aggressively fight a slowdown.
The remarks on Tuesday "could catch Draghi's potential successor in a package of easing policies," said Bart Hordijk, an analyst at Monex Europe, a foreign exchange trading company, in a statement. "Even a new E.C.B. More fierce president will have to take a little time to unravel before an extra tightening can even be put on the agenda anymore. "
Mr. Draghi did not say publicly who he thought should succeed him, but he indicated his opposition to Mr. Weidmann, with whom he had a tense relationship.
Draghi hinted on Tuesday that Weidmann's criticism of the European Central Bank's policies had fueled populism. In 2013, Mr. Weidmann, also president of the Bundesbank, the German central bank, testified before the German constitutional court to support opponents of the euro who had sued to block the purchase program. # 39; obligations.
Without mentioning Mr Weidmann by name, Mr Draghi said that whenever the national central banks supported the policies of the European Central Bank, they helped to get people to accept stimulus measures. "Whenever that did not happen, you saw the opposite," Draghi said during the discussion. "They actually fueled populism."
In December, the European Central Bank stopped adding to its stock of government bonds and companies, which it had bought in large quantities to bring down rates of interest. market interest. But in March, as Trump's trade war disrupted the global economy, the European Central Bank raised doubts and revived a program to encourage banks to lend more to businesses and consumers to prevent a recession. .
