European Central Bank (ECB) President Christine Lagarde has made a bold move to address the issue of information leaks by confiscating the mobile phones of policymakers during a recent meeting. This unprecedented step was taken to prevent crucial information from being leaked ahead of policy decisions. Lagarde’s predecessor, Mario Draghi, had also faced challenges with information leaks during his presidency.
The 26 members of the Governing Council were instructed to hand over their mobile phones at the beginning of the meeting, just before the announcement of Claudia Buch as the ECB’s top banking supervisor. Previously, the choice of the current chair, Andrea Enria, had been leaked to the media before the official release.
This move by Lagarde follows the exclusive revelation by Reuters that the ECB would raise a key inflation forecast, which influenced expectations of an interest rate hike. Lagarde criticized the leak at the start of the meeting, and her criticism was echoed by several colleagues.
Lagarde has been working towards creating a more harmonious atmosphere within the Governing Council, aiming to address the division inherited from Draghi’s tenure. While high inflation over the past two years reduced room for dissent and led to interest rate hikes, the increase in borrowing costs raised concerns among policymakers.
Lagarde has made efforts to improve communication and collaboration among the policymakers. She emphasized the importance of listening and not pre-empting decisions, in contrast to Draghi’s leadership style. She also encouraged governors to keep internal disputes out of the media and to refrain from using personal phones during meetings.
Overall, Lagarde’s actions and efforts have been effective in minimizing information leaks and fostering a more united Governing Council.
[Source: Reuters]
[Definitions:
ECB - European Central Bank: The central bank responsible for the monetary policy of the euro area. It consists of the central banks of the 19 eurozone countries.
Information leak - The unauthorized release of confidential or classified information to the public.]