Germany's #Schnabel will oversee #ECB money-printing programme

The appointment, part of a broader portfolio reshuffle on the ECB’s executive board under its new president, Christine Lagarde, marks a diplomatic victory for Germany, where the central bank’s easy-money policy is deeply unpopular.

Schnabel herself has said she would have voted against restarting the multi-trillion-euro bond-buying scheme in September, although she considers it a valid instrument and sees the need to maintain an easy policy.

Under the reshuffle, published on the ECB’s website, its other new board member, Italy’s Fabio Panetta, will represent the central bank at international forums.

Those were the most coveted portfolios after Benoit Coeure’s term ran out on 31 December.

Among other changes, Schnabel will run the ECB’s research department, previously the remit of vice-president Luis de Guindos, who will now be responsible for risk management.

This was one of the portfolios held by Sabine Lautenschlaeger, Germany’s previous board representative, until she unexpectedly resigned in the autumn out of disagreement with the ECB’s course.

The ECB’s six-people executive board runs the institution and makes proposals to the decision-making governing council, which includes the heads of the euro zone’s 19 national central banks.

While executive board members are meant to be independent of their country of origin, they are put forward by national governments. Germany, France and Italy, the euro zone’s biggest economies, have de facto permanent seats.