Now several months into a three-year stint, Marcinko previously held various positions at Germany's central bank and also worked at the German Ministry of Finance. He will be posted as financial attaché at the German
embassy in Riga for an initial three years stint. A couple of months into the job, Alexander Welscher caught up with him for an update.
Why did the Bundesbank decide to set up a representative office in the Baltics?
The main idea was to strengthen our trust-based relationships with the central banks of the Baltic states and established close contacts with national authorities and financial institutions on the ground. Earlier it used to be the case that the Bundesbank primarily had representatives in other currency areas, such as the USA, Japan or Turkey, with a clear monetary policy focus.
But some few years ago the decision was made to have people permanently present also in some European capitals – to strengthen the exchange and foster dialogue within Europe.
How different are the positions of the Baltic states from the German ones?
Estonia, Latvia and Lithuania are often considered as like-minded allies for Germany. Indeed we agree on many issues in monetary policy, and especially in the central bank area we are on the same page.
Nevertheless, there is interest at the Bundesbank to find out more about the situation in the Baltics and shed more light on some aspects from a perhaps more political perspective but always with to regard to financial stability and the financial and economic environment.
In what topics is the Bundesbank especially interested?
Some of them are, of course, already known in Germany such as the fintech scene in Lithuania, the start-up environment in Latvia and digitalization in Estonia. But also other areas, such as cybersecurity and disinformation which at one point might become topical for financial stability or sanctions implementation, are relevant and of interest.
Due to their location and the geopolitical situation the Baltics are particularly exposed to risks in these areas but at already quite experienced in countering them. This is why we want to get to know more and learn from their profound experiences.
How you have been received so far in Riga, Tallinn and Vilnius?
I have been basically welcomed with open arms. Everyone was openly talking to me and in general all of the people I have met so far for a conversation took a lot of time for me – be it here Latvia or in Estonia or Lithuania. This made the start really easy for me.
Plus, the Baltics are countries with affinity for Germany. There are many historical and cultural ties, which made it also easy to adapt quickly both in the professional and the private life. Some would like see to even more ties.
At the inauguration event the wish and expectation were clearly expressed that after Bundesbank now also German commercial banks will start operating in the region.
The hope was also raised and expressed to me in meetings and conversations but I have always made it clear that I am not an ambassador for commercial banks from Germany. I am here to represent the Bundesbank.
But do you understand the wish for a bigger German presence also in the financial sector of the Baltics?
Definitely. Almost everyone I have spoken to so far has expressed the viewpoint that more competition in the Baltic banking sector would be welcomed or even needed. So it is quite logical that you then wish for more financial institutions to enter the market. But as I said: It is not my job to foster or support this.
How much are you looking also beyond the border to Russia where no Bundesbank representative is currently present?
This is not my main task but Russia is a neighbouring state, which means there will always be somehow trade and financial flows between the Baltics and Russia. So you might be able to get some insights about what is happing in the country without being there. Russia and the war in Ukraine are anyway much closer and more present here in the Baltics than in Germany. This is clearly noticeable. And also the effects and consequences are more striking than elsewhere.
This interview first appeared in Baltic Business Quarterly magazine and is reproduced by kind permission. You can read more about the German-Baltic Chamber of Commerce in Estonia, Latvia and Lithuania at the official website and find out more about the Baltic Business Quarterly magazine here: https://www.ahk-balt.org/lv/publikacijas/zurnals.
