Lagarde takes ECB governors on retreat to iron out differences: sources

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Lagarde takes ECB governors on retreat to iron out differences: sources
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Christine Lagarde, new chief of the European Central Bank, has taken her most rivalrous underlings on a retreat to iron out their differences before she begins putting her agenda to work. Via Reuters

FILE PHOTO - European Central Bank's President Christine Lagarde answers journalists questions as she arrives at the ECBs headquarter in Frankfurt, Germany, November 4, 2019. REUTERS/Ralph Orlowski

Lagarde, who took the reins at the ECB just two weeks ago, has inherited a divided Governing Council, plagued by leaks and public opposition from some policymakers to a lavish stimulus scheme championed by former ECB boss Mario Draghi. This will likely tie Lagarde’s hands for much of next year. Hoping to heal this rift, Lagarde invited the 19 euro zone central bank governors and the board for a private meeting outside the ECB building, offering an opportunity for candid, off-the-record discussions without staff or aides, two sources familiar with the matter said.

The move is seen as an attempt to contain debates within the confines of the central bank and to prevent leaks that could damage the ECB’s credibility and effectiveness.

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