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Dr Jens Weidmann

President Weidmann puts the Bundesbank's position in the wage debate into perspective

"We do not interfere in wage negotiations." With these words, Bundesbank President Jens Weidmann responded to media reports to the effect that the Bundesbank had called on German wage-bargaining partners to conclude higher wage agreements. In an interview with the Frankfurter Allgemeine Zeitung, Mr Weidmann emphasised the importance of wage agreements for price stability.

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People and monitors

Swiss franc and US dollar are "safe haven" currencies

According to Bundesbank findings, exchange rates react in different ways to financial market crises. While no crisis-specific behaviour can be found for the euro, the Swiss franc, US dollar and yen clearly react to heightened tensions on the financial markets. In its July Monthly Report, the Bundesbank shows that exchange rate reactions have various causes.

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Rising costs put pressure on health insurance institutions

In an article in the July Monthly Report, Bundesbank economists warn that an ageing population and the rising costs of new medical treatment will put pressure on Germany’s 134 statutory health insurance institutions. The economists emphasise that insurees should be prepared for rising contributions, adding that it is the task of legislators “to keep cost pressures in the healthcare system in check”.

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Weidmann calls for an end to preferential treatment of sovereign debt

Jens Weidmann, President of the Bundesbank, has spoken out in favour of ending the preferential regulatory treatment for government bonds. Speaking to members of the German-British Chamber of Industry and Commerce in London, Mr Weidmann said that an adequate risk-weighting of sovereign bonds in banks’ balance sheets would make banks more resilient. He also said that the large exposures regime that currently applies to loans should in future be applied to sovereign debt as well. Mr Weidmann remarked that sovereign insolvencies needed to be possible without jeopardising the financial system as a whole.

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Industry

Slowdown in economic growth in Germany

In the Bundesbank's estimation, the economic upsurge distinctly lost momentum in the first two months of the spring quarter. As explained in the July Monthly Report, Bundesbank economists are expecting real GDP to remain at the previous quarter's level in the second quarter.

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Dombret: Push for more progress on supervision

Bundesbank Executive Board Member Andreas Dombret has called for further progress in the work on the Single Supervisory Mechanism. Speaking with the business magazine Wirtschaftswoche, Mr Dombret said that although regulation and supervision had made the financial system in Europe more secure, that was not enough. It must be possible in future for systemically important financial institutions to be wound up without bringing down the entire financial system, Mr Dombret said.

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