Weidmann Says ECB’s Climate Goal Push Mustn’t Hurt Independence

(Bloomberg) -- Bundesbank President Jens Weidmann warned against using monetary policy too directly to fight climate change, saying that adopting a broad view of the European Central Bank’s mission might jeopardize independence.

“Independence and a narrow interpretation of the mandate belong together -- I am therefore skeptical when demands are made to put monetary policy at the service of active climate policy,” Weidmann said at an event in Freiburg, Germany, on Thursday. “Nevertheless, we can support and accompany the transition to a more sustainable financial system as part of our mandate.”

Weidmann’s remarks come after ECB President Christine Lagarde this month launched a review of the institution’s strategy, which will also extend into topics such as climate change, financial stability and inequality. She argued “it’s difficult to disagree that climate change is a threat to financial stability” and it will therefore be an important issue for policy makers to discuss.

To contact the reporter on this story: Carolynn Look in Frankfurt at clook4@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Jana Randow, Craig Stirling

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