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Tietmeyer may become next Bundesbank president

John Eisenhammer
Thursday 17 June 1993 18:02 EDT
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FRANKFURT-Hans Tietmeyer, deputy president of the Bundesbank, is to be proposed at the next German cabinet meeting as successor to the president, Helmut Schlesinger, when he retires in the autumn, writes John Eisenhammer.

Johann Wilhelm Gaddum, a Bundesbank directorate member known for his super-hawkish views on monetary policy and opposition to European monetary union, will be proposed in turn as the replacement for Mr Tietmeyer.

At its regular fortnightly central council meeting yesterday, the Bundesbank left Germany's leading interest rates unchanged, fearing that any easing might exacerbate worries in the markets about the stability of the German mark. Theo Waigel, the Finance Minister, presented plans for saving up to DM30bn in 1995 after cutting spending by at least DM20bn next year.

A Tietmeyer/Gaddum team, if confirmed, will strengthen the Bundesbank's deep-seated scepticism about European monetary union. Both men have been open about their belief that the Maastricht timetable on EMU is impossible. Chancellor Helmut Kohl, looking towards a general election at the end of next year, will be hoping however for a more sympathetic hearing from Mr Tietmeyer and Mr Gaddum. Both are close allies of the Chancellor.

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