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Sabine Lautenschläger resigns from ECB executive board

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Sabine Lautenschläger resigns from ECB executive board

The European Central Bank said Sept. 25 that Sabine Lautenschläger will resign from the ECB Executive Board and Governing Council on Oct. 31, prior to the end of her term of office.

Lautenschläger joined the ECB bodies in January 2014 and was supposed to serve an eight-year term. "President Mario Draghi thanked her for her instrumental role in helping set up and steer Europe-wide banking supervision, a key pillar of banking union, as well as her unwavering commitment to Europe," the ECB said in a press release.

The ECB did not provide Lautenschläger's reason for her departure, which follows an economic stimulus package unveiled by the central bank on Sept. 12 that included a reduction in the rate on the deposit facility and a restart of bond purchases.

Lautenschläger told Market News in August that it was "much too early" for the introduction of a large stimulus package due to current economic data. She said the ECB should only resume bond purchases once the risk of deflation emerges.

"Furthermore, I am concerned about setting the wrong incentives for governments if we were to re-start the [Asset Purchase Programme] and buy further government bonds. What is needed are structural reforms to foster sustainable growth," Lautenschläger said.

Christine Lagarde will replace Draghi as president of the ECB on Nov. 1.