The Atlanta Journal-Constitution
Lagarde stamps style on crisis- fighting ECB
One year in, she’s building ‘ bridge with the public.’
“I’m going to be myself, and therefore probably different,” Christine Lagarde declared in a defining monologue at her first news conference as European Central Bank president in late 2019.
That moment, signaling her intention to put a personal stamp on the institution’s communication, has been matched by a distinctive approach since taking office on Nov. 1 last year. It’s verymuch a break with the past, even considering the extraordinary events of the coronavirus crisis that have dominated her reign.
The newstyle, in keeping with Lagarde’s stated aim to build a “bridge with the public,” often means more frequent remarks by the president and Executive Board than under her predecessor, Mario Draghi. That brings with it the advantage of more engagement and openness, but also the risk that mixed or unscripted messages can roil markets.
A major test of her communication approach was met lastweek with a decisive and clear message that was widely praised by investors. Itwas helped by the Governing Council’s unanimity in the view that Europe will need more stimulus to deal with the recession likely to accompany the secondwave of the coronavirus pandemic.
At times, “it has been difficult to tell who to listen to, whereas with Draghi it was clear,” said Carsten Brzeski, an economist at ING Germany. Nevertheless, Lagarde is now “accepting what’s required of an ECB president in terms of communication.”
In the seven weeks between the September and October policy meetings, the six-member board racked up more than 60 public appearances via online conferences, blogs and interviews on a wide range of topics.
The president has been prolific with media. The ECB’s website lists 14 interviews by Lagarde in the past 12 months. That compares to a single one in the final year of her predecessor, who rarely spoke to individual news outlets.
Some of the board’s frenzy of utterances might be explained by the ECB’s state of alert, giving officials plenty to talk about. Working via video rather than attending events also has made it far easier to accept invitations coming their way.
Nevertheless, the ECB’s multichannel, all- hours approach to broadcasting its views has been remarkable. Lagarde even managed almost to upstage herself Oct. 19 when she spoke at a French event and released a recorded statement at a separate conference within the span of a few minutes.
More communication can reinforce public engagement andre pair what Lagarde sees as a lack of understanding of the ECB. That’s part of the institution’s strategy review, which has given organizations a chance to voice concerns. She also has spent time charming Germans miffed at poor returns caused by negative interest rates.
“If you’re only talking to the markets, which was the ECB’s modus operandi before, you’re not reaching the general public,” said Nick Kounis, an economist at ABN Amro in Amsterdam. “Lagarde is trying to change that. But if you’re talking to two different groups, you need to be thinking carefully about who you’re talking to and when.”