My colleagues on the Governing Council under the leadership of Christine Lagarde deserve thanks for the open and constructive atmosphere in the sometimes difficult discussions of recent years. Despite the tensions caused by the pandemic, we have managed to successfully complete the review of the strategy as a cornerstone of European monetary policy. As the Bundesbank, we have confidently contributed to the review process with our analytical expertise and our beliefs. A symmetrical and clearer inflation target was agreed. Side effects and, in particular, financial stability risks need to be given more attention. A targeted overshooting of the inflation rate was rejected. And the Eurosystem will pay more attention to climate risks in the future. These are all important points for me.
As often happens, it now depends on how this strategy is “experienced” through concrete monetary policy decisions. In this context, it will be crucial not to look unilaterally at deflationary risks, but not to lose sight of the potential inflationary dangers either. And the crisis measures with their extraordinary flexibility are only proportionate in the emergency situation for which they were created. A stability-oriented monetary policy will only be possible in the long term if the monetary union framework ensures unity of action and responsibility, monetary policy respects its narrow mandate and does not act in the wake of fiscal or market policy financial. This remains my firm personal belief, as well as the great importance of monetary policy independence.
At the same time, the Bank has transformed itself internally. Together, we have created a culture of openness where we treat each other with esteem and respect, regardless of whether we work in the headquarters, regional offices or branches. All my colleagues on the Board of Directors have contributed to shaping this path, and I would like to express special thanks to them. It has always been important to me that we perceive ourselves as “a bank”, which can only perform its important tasks well if all parties contribute and are listened to. And I believe we have made good progress in this regard.
Our public relations work has also changed: in recent years, the Bundesbank has presented itself as a transparent, accessible and, above all, competent institution that people can trust. This has been demonstrated by the open days and numerous other public events. Through the digitization initiative and the work of KADi, the Bank has become more agile and flexible at the same time, and not only here, we work better together between departments. Other projects were only started and prefigured in this period, but not completed. This applies to the new campus and “new work environments” as well as to the digital euro project.
I am writing all this because I am convinced that together we have achieved a lot in recent years, and I would like to thank you for that. Thank you for supporting the Bank’s transformation towards greater openness and valuable cooperation. Thank you for contributing your expertise, your ideas and your life to our internal discussions, the work of the Eurosystem committees and the public image of the Bank – even in the difficult conditions of the pandemic.