Schlesinger to Head Bonn Central Bank

Helmut Schlesinger, a Bundesbank vice president, has been named to replace Karl Otto Poehl as the central bank’s chief, the Finance Ministry said Tuesday.

The ministry said in a statement that Schlesinger will take over Poehl’s job for two years, after which he is to be replaced by Hans Tietmeyer, a central bank director.

Tietmeyer, 59, will be Schlesinger’s deputy.

According to the statement, Chancellor Helmut Kohl’s Cabinet is to formally approve the replacement at a meeting June 12.

Schlesinger was expected to be named successor after the Bundesbank chief announced this month that he will step down in October.

Poehl, 61, whose term as head of the central bank was to have expired in 1995, resigned for personal reasons.

Even before Poehl’s announcement, German news media reported that the 67-year-old Schlesigner planned to retire in two years because of his age.

The two have worked closely on Bundesbank policy for years, and Schlesinger is expected to continue the central bank’s tight stance on controlling inflation in Germany.

According to Bundesbank law, a president must be appointed for at least two years. Senior Bundesbank officials traditionally leave the central bank when they are 68, but the sources said the age limit could be extended.

Banking analysts say both Schlesinger and Tietmeyer will maintain the bank’s tough anti-inflationary policies, rejecting calls for lower interest rates to stimulate international growth and stressing the need for a strong mark.