German economist Joachim Nagel was appointed by the government of Olaf Scholz to head the Bundesbank to replace current outgoing president Jens Weidmann, German Finance Minister Christian Lindner said on Monday.

“He is an experienced figure who will ensure continuity” at the Bundesbank, the minister said in a Twitter publication.

Joachim Nagel, 55, is familiar with the central bank, where he worked for 17 years.

Nagel, who is close to the Social Democratic Party (SPD), is considered as a compromise candidate for Buba, from which Weidmann will step down on December 31st.

This is one of the first important appointments of Social Democratic Chancellor Olaf Scholz, who came to power at the head of a coalition with the Greens and liberals in the FDP.

Nagel’s official appointment, expected in the coming days, comes at a tense time for the Bundesbank as inflation soars in Germany to more than 5% in November, above the eurozone average and well above the target of 2 % of the European Central Bank (ECB).

“Given the risk of inflation, the importance of a stability-oriented monetary policy is growing,” Lindner, leader of the liberal party and supporter of fiscal and monetary orthodoxy, said in a tweet.

Jens Weidmann, an influential member of the board of the European Central Bank and a figure of monetary orthodoxy, will leave his place long before the end of his term and at a key moment for the future of European monetary policy.

Regularly beaten in recent times by his uncompromising line, he announced his departure in October, citing personal reasons.

Souce: With Agencies