Lafontaine's departure shapes Euro outlook.(Oskar Lafontaine resigns as Germany's finance minister)

Europe, April, 1999 by Barber, Lionel

Political analysts believe that Oscar Lafontaine's resignation as Germany's minister of finance will restore a measure of predictability in the country's political scene. His departure may also have brought relief to Wim Duisenberg, president of the European Central Bank, who has expressed displeasure over Lafontaine's version of keynesian economics. His actions have dampened the confidence of German industry and the credibility of the euro in foreign exchange markets. Lafontaine's disappearance from European politics may tilt the balance of power in favor of the economic 'modernizers' led by UK's Tony Blair.

The resignation of Oskar Lafontaine, Germany's mercurial finance minister, will go down as a seismic event in the history of the euro. His abrupt departure restores a...

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