Wim Duisenberg
Encyclopedia
Willem Frederik "Wim" Duisenberg (9 July 1935 – 31 July 2005) was a Dutch
politician of the Labour Party
(PvdA). He was the first President of the European Central Bank from 1 July 1998 until 31 October 2003. He was instrumental in the Introduction of the euro
in the European Union
in 2002. He was also credited for making numerous improvements for the Economy of the Netherlands
. A successful economist and financier he served as Minister of Finance
from 11 May 1973 until 19 December 1977, he later served as President of the Central Bank of the Netherlands
.
town of Heerenveen
.
He studied at the University of Groningen
, where he received a MSc
degree in Economics
, with majoring in international economic relations. In 1965, he obtained a PhD
degree; his thesis was "The Economic Consequences of the Disarmament".
in Washington D.C. for years followed by a year as an advisor to the director of the Nederlandsche Bank
, the Dutch central bank in Amsterdam
. He was then appointed a professor at the University of Amsterdam where he taught macroeconomics.
From 1973 to 1977, Duisenberg was Minister of Finance under Prime Minister Joop den Uyl
, Shortly afterwards, he gave up his seat in the Dutch parliament to become vice president of Rabobank
, a Dutch bank. Two years later, he was appointed director of the Nederlandsche Bank, serving as its president from 1982 to 1997.
His tenure at the Dutch central bank was marked by caution and reserve. Under his direction, the Dutch guilder was linked to the German Deutsche Mark, and this benefited the Dutch economy, owing to the strength of the German currency. He also followed German central bank's interest rate policies closely, which earned him the nickname "Mr Fifteen Minutes" because he quickly followed any interest rate changes made by the Germans.
, much to the chagrin of France, who wanted a French candidate. A compromise was agreed upon (although publicly denied by all parties) whereby Duisenberg would serve for at least four years, upon which the Frenchman Jean-Claude Trichet
, director of the Banque de France
, would take over. In 1999, Duisenberg received the Vision for Europe Award
in recognition of his efforts toward the unification of Europe.
Duisenberg announced he would retire on 9 July 2003 (his 69th birthday), but he remained in office until Trichet was cleared of charges of fraud in connection with the collapse of the French bank Crédit Lyonnais
. Trichet took over presidency of the ECB on 1 November 2003.
after suffering a heart attack
. A commemoration service was held on 6 August 2005 in the Amsterdam Concertgebouw
. Duisenberg was buried later that day in the Zorgvlied cemetery in Amsterdam
.
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
politician of the Labour Party
Labour Party (Netherlands)
The Labour Party , is a social-democratic political party in the Netherlands. Since the 2003 Dutch General Election, the PvdA has been the second largest political party in the Netherlands. The PvdA was a coalition member in the fourth Balkenende cabinet following 22 February 2007...
(PvdA). He was the first President of the European Central Bank from 1 July 1998 until 31 October 2003. He was instrumental in the Introduction of the euro
Introduction of the euro
The euro came into existence on 1 January 1999, although it has been a goal of the European Union and its predecessors since the 1960s. After tough negotiations, particularly due to opposition from the United Kingdom, the Maastricht Treaty entered into force in 1993 with the goal of creating...
in the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
in 2002. He was also credited for making numerous improvements for the Economy of the Netherlands
Economy of the Netherlands
On the Index of Economic Freedom, the Netherlands is the 13th most laissez-faire capitalist economy out of 157 surveyed countries. At the time of writing the Netherlands is the 16th largest economy of the world. Between 1998 and 2000 annual economic growth averaged nearly 4%, well above the...
. A successful economist and financier he served as Minister of Finance
Ministry of Finance (Netherlands)
The Ministry of Finance is the Dutch ministry of finance: it is occupied with the national budget, taxation and financial economic policy, including supervision of financial markets...
from 11 May 1973 until 19 December 1977, he later served as President of the Central Bank of the Netherlands
De Nederlandsche Bank
De Nederlandsche Bank is the central bank of the Netherlands. It is part of the European System of Central Banks .-History:...
.
Early life
Duisenberg was born in the FrisianFriesland
Friesland is a province in the north of the Netherlands and part of the ancient region of Frisia.Until the end of 1996, the province bore Friesland as its official name. In 1997 this Dutch name lost its official status to the Frisian Fryslân...
town of Heerenveen
Heerenveen
Heerenveen is a town in the Heerenveen municipality of the province of Friesland , in the north of the Netherlands.- History :The town was established in 1551 by three lords as a location for the purpose of digging peat which was used for fuel, hence the name...
.
He studied at the University of Groningen
University of Groningen
The University of Groningen , located in the city of Groningen, was founded in 1614. It is one of the oldest universities in the Netherlands as well as one of its largest. Since its inception more than 100,000 students have graduated...
, where he received a MSc
Master of Science
A Master of Science is a postgraduate academic master's degree awarded by universities in many countries. The degree is typically studied for in the sciences including the social sciences.-Brazil, Argentina and Uruguay:...
degree in Economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
, with majoring in international economic relations. In 1965, he obtained a PhD
Doctor of Philosophy
Doctor of Philosophy, abbreviated as Ph.D., PhD, D.Phil., or DPhil , in English-speaking countries, is a postgraduate academic degree awarded by universities...
degree; his thesis was "The Economic Consequences of the Disarmament".
Politics
Duisenberg subsequently worked for the International Monetary FundInternational Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
in Washington D.C. for years followed by a year as an advisor to the director of the Nederlandsche Bank
De Nederlandsche Bank
De Nederlandsche Bank is the central bank of the Netherlands. It is part of the European System of Central Banks .-History:...
, the Dutch central bank in Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
. He was then appointed a professor at the University of Amsterdam where he taught macroeconomics.
From 1973 to 1977, Duisenberg was Minister of Finance under Prime Minister Joop den Uyl
Joop den Uyl
Johannes Marten den Uijl, known as Joop den Uyl was a Dutch politician of the Labour Party . He served as Prime Minister of the Netherlands from May 11, 1973 until December 19, 1977....
, Shortly afterwards, he gave up his seat in the Dutch parliament to become vice president of Rabobank
Rabobank
Rabobank is a financial services provider with offices worldwide. Their main location is in the Netherlands. They are a global leader in Food and Agri financing and in sustainability-oriented banking...
, a Dutch bank. Two years later, he was appointed director of the Nederlandsche Bank, serving as its president from 1982 to 1997.
His tenure at the Dutch central bank was marked by caution and reserve. Under his direction, the Dutch guilder was linked to the German Deutsche Mark, and this benefited the Dutch economy, owing to the strength of the German currency. He also followed German central bank's interest rate policies closely, which earned him the nickname "Mr Fifteen Minutes" because he quickly followed any interest rate changes made by the Germans.
First president of the European Central Bank
Owing to the success of his monetary policy, he became well-known in other European countries, and this led to his appointment in 1998 as the first president of the new European Central Bank in FrankfurtFrankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
, much to the chagrin of France, who wanted a French candidate. A compromise was agreed upon (although publicly denied by all parties) whereby Duisenberg would serve for at least four years, upon which the Frenchman Jean-Claude Trichet
Jean-Claude Trichet
Jean-Claude Trichet is a French civil servant who was the president of the European Central Bank, a position he held from 2003 to 2011. He is also a member of the Board of Directors of the Bank for International Settlements...
, director of the Banque de France
Banque de France
The Banque de France is the central bank of France; it is linked to the European Central Bank . Its main charge is to implement the interest rate policy of the European System of Central Banks...
, would take over. In 1999, Duisenberg received the Vision for Europe Award
Vision for Europe Award
The Vision for Europe Award is an honour that has been bestowed annually since 1995 by the non-profit Edmond Israel Foundation in "recognition of outstanding achievements in taking Europe into the future."...
in recognition of his efforts toward the unification of Europe.
Duisenberg announced he would retire on 9 July 2003 (his 69th birthday), but he remained in office until Trichet was cleared of charges of fraud in connection with the collapse of the French bank Crédit Lyonnais
Crédit Lyonnais
Crédit Lyonnais is a historic French bank. In the early 1990s it was the largest French bank, majority state-owned at that point. Crédit Lyonnais was the subject of poor management during that period which almost led to its bankruptcy in 1993...
. Trichet took over presidency of the ECB on 1 November 2003.
Death
Duisenberg died in 2005 at the age of 70 while on vacation at his villa in Faucon near Orange, France. He drowned in his swimming poolSwimming pool
A swimming pool, swimming bath, wading pool, or simply a pool, is a container filled with water intended for swimming or water-based recreation. There are many standard sizes; the largest is the Olympic-size swimming pool...
after suffering a heart attack
Myocardial infarction
Myocardial infarction or acute myocardial infarction , commonly known as a heart attack, results from the interruption of blood supply to a part of the heart, causing heart cells to die...
. A commemoration service was held on 6 August 2005 in the Amsterdam Concertgebouw
Concertgebouw
The Concertgebouw is a concert hall in Amsterdam, Netherlands. The Dutch term "concertgebouw" literally translates into English as "concert building"...
. Duisenberg was buried later that day in the Zorgvlied cemetery in Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
.
Quotes
- "Central Bankers are like cream. The more you whip them, the stiffer they get."
- "I hear you, but I do not listen." A response to politicians who loudly pleaded for lowering interest rates to boost the economy.
Decorations
- Order of the Netherlands Lion
- Knight (11 April 1978)
- Commander (17 June 1997)
- Order of Orange-NassauOrder of Orange-NassauThe Order of Orange-Nassau is a military and civil order of the Netherlands which was created on 4 April 1892 by the Queen regent Emma of the Netherlands, acting on behalf of her under-age daughter Queen Wilhelmina. The Order is a chivalry order open to "everyone who have earned special merits for...
- Commander (Unknown)