Hans Tietmeyer and his ‘mission’ for euro stability

Hans Tietmeyer died on December 27, 2016, at the age of 85. He was an outstanding president of the Deutsche Bundesbank, perceived in Germany and beyond as the guarantor of the stability of the Deutschmark. He became a member of the Bundesbank`s Board in 1990, his presidency lasted from 1993 to 1999. It was not without some irony that he presided over the end of the German currency when it celebrated its fiftieth anniversary in 1998 and disappeared at the end of the same year. However, he was also a central figure in preparing the foundations for the euro. His ambition – one could even say 'mission' – was to make the euro as stable as the German currency.

Tietmeyer was a civil servant of the highest order. He had a long, successful career in the German Ministry of Economics, where he was devoted to the realisation of the Soziale Marktwirtschaft, the German concept of an economic order combining market competition with support for socio-economically vulnerable people. In this context, his deep Catholic roots – which also resulted in him holding several advisory functions to the Vatican – were apparent. While underlining the economic arguments for monetary stability, he also stressed the socio-ethical dimension of avoiding inflation because of its impact first and foremost on the poor.

From his formative years, Tietmeyer was a strong supporter of and believer in European integration. Working on this project and representing Germany in innumerable committees became his dominating professional engagement. As member of the Werner group, with the mandate to prepare the introduction of a single European currency at the end of the 1970s, he insisted on parallel developments in other fields of economic policy. As deputy finance minister, he substantially increased his influence on matters related to European integration. The importance of his role in the field of international finance became widely evident when he was the target of a terrorist attack in 1988, when he was the key person responsible for the organisation of the annual International Monetary Fund/World Bank meeting in Berlin. It was his usual and remarkable self-confidence that proved decisive in enabling his escape.

Tietmeyer was respected, even by his political adversaries. He was always well informed and prepared to the highest professional standard. His high reputation was also visible when former German chancellor Helmut Kohl asked for his (temporary) support in organising the financial aspects of German unification when he had already joined the Bundesbank.

Being appointed president of the Bundesbank was the pinnacle of a long and outstanding career. In this position, he represented the Bank and Germany in many European and global forums. A few politicians suspected he would try to undermine the creation of a European single currency. This was – in some cases, probably – a wilful misunderstanding. He was fully aware of the different cultures in economic, fiscal and monetary affairs in a number of European countries. He was also cognisant of the high risk involved in an early – if not premature – start to European Economic Monetary Union with a high number of very heterogeneous member states. During the last years of his life, he had to recognise that the legal foundations for the new currency were not a sufficient enough bedrock to guarantee eurozone stability.

I have known Tietmeyer for many decades. During the years we both served at the Bundesbank, we developed a close professional and personal relationship based on mutual respect. It was his initiative that led to my appointment as member of the executive board of the European Central Bank. He will be greatly missed.

Tietmeyer image: INSM.

Issing Image: Mario Schmitt