Lagarde’s ECB job is a victory for Macron and a chance for Osborne
The chatter in Paris is that Emmanuel Macron has played a blinder.
On Monday night he was raging to the media about the shoddy state of EU decision making, but by Wednesday evening he was patting himself on the back. Macron pushed Ursula von der Leyen as a compromise candidate for Commission president, simultaneously helping Angela Merkel and dampening persistent rumours of a growing rift between France and Germany.
This canny manoeuvre also allowed him to claim his ultimate desire: a French head of the European Central Bank.
Critics of the decision to appoint Christine Lagarde point to her lack of experience in central banking, the fact that she’s not an economist, her controversial support for crippling Eurozone restructuring and the thorny issue of her conviction for negligence – something that she brushed off “like I shake dandruff from my suit” – in the words of dapper City veteran David Buik.
None of this mattered to Macron, who sees the other bone of contention (the fact that she’s a political operator) as the main reason for her elevation. That, and the fact that she’s not Bundesbank chief Jens Weidmann, Germany’s hawkish central banker who was in the running as the post-(or anti-) Draghi candidate.
There’s been mixed reaction in the City to Lagarde’s appointment, as our feature yesterday detailed, but the market view (for what it’s worth) is that she’ll represent continuity, presiding over more of her predecessor’s ultra-loose policy.
The other issue thrown up by her appointment is who will take her spot at the IMF? Mario Draghi, Mark Carney and Raghuram Rajan are all in the frame – as is George Osborne, who let it be known last night that he wants the gig.
The management of the Evening Standard, where he currently resides as editor, may take a dim view of such a blatant pitch for another job – deployed as it was on the front page of rival publications. A bold move.
Every little helps
I was deeply moved to read the Sunday Times feature last week on the children of the Broadwater Farm estate. With the local school closing for the summer, many children face the prospect of remaining indoors all day – with parents too afraid of gang violence to let the kids out and too poor to take them away, even for a day.
The end of the article featured an appeal for donations (£200 would take 30 kids swimming for the day) from readers The sum raised so far is £210,000. What a response.
It’s the thought that counts
Philip Hammond took part in his final Commons clash with John McDonnell this week, and the shadow chancellor took the chance to give Hammond a gift: a guide book to London focusing on the capital’s radical history.
A nice touch, undermined by the fact that the author, David Rosenberg, is an outspoken critic of the “very largely concocted allegations of antisemitism” in the Labour party and has lambasted the Labour MPs who have called it out. Should have just had a whip-round, John.
Grand slam
If you haven’t been able to get Wimbledon tickets but want to experience a slice of the action, help may be at hand.
Despite an ill-fated attempt to fend of bankruptcy charges by claiming diplomatic immunity via the Central African Republic, the auction of Boris Becker’s trophies and memorabilia is back on. It’s a sad state of affairs, but the trustees of Becker’s bankrupt estate are promising “a rare opportunity for tennis fans”. The Wyles Hardy auction closes on 11 July.
It’s all happening down south
Good news from my home region this week as Vodafone switched on 5G on the Isles of Scilly, and marked the occasion by signing a sponsorship deal with the smallest football league in the world – featuring two teams of islanders.
Over the water in Cornwall, excitement grows at the prospect of hosting one of the UK’s two new spaceports. Richard Branson’s Virgin Orbit is on board and the UK Space Agency confirmed this week it was drawing up regulations to allow sub-orbital tourist flights within the next decade. Reach for the stars, Cornwall.
Main image credit: Getty