The Bundesbank believes that the German economy has made very little headway in the course of the third quarter of 2014. According to the current issue of the Monthly Report, Bundesbank economists expect growth to remain subdued in the fourth quarter thanks to the slight decline in new orders received by industry and the gloomy prevailing sentiment.
Bundesbank President Jens Weidmann has spoken out in favour of a strict application of the rules of the Stability and Growth Pact. As he commented at a recent event in Bielefeld, if these rules were again stretched to their absolute limits, the credibility of the Pact would suffer enormously.
Against the backdrop of an increasingly gloomy global economic outlook, Bundesbank President Jens Weidmann has rejected calls for economic stimulus packages. In the run-up to the IMF Annual Meeting, he said that in his view "adopting flash-in-the-pan economic stimulus packages" was "of little help" in facilitating sustainable growth.
The ECB Governing Council agreed the details of its asset-backed securities and covered bond purchase programmes in Naples on 2 October 2014. The purchases are aimed at facilitating credit provision to the euro-area economy. Bundesbank President Jens Weidmann is critical of these programmes.
The Bundesbank has recalculated Germany's general government debt level using amended EU-wide calculation standards for the country's autumn notification under the European budgetary surveillance procedure. The new figures show that general government debt as defined in the Maastricht Treaty amounted to €2.159 trillion at the end of 2013, which is €12 billion higher than calculated previously.
Most listed equities of enterprises domiciled in Germany are held by non-resident investors. This is shown by a recent analysis of the Bundesbank's statistics on securities investments, published in the September Monthly Report. The Bundesbank's economists believe that this can be seen as reflecting the growth in international ties.
In its latest Monthly Report, the Bundesbank argues in favour of putting Germany's state government revenue-sharing scheme on a more transparent and logical footing. To give the federal states greater responsibility for their own affairs, including against the backdrop of the new debt brake, the Bundesbank endorses the proposal to expand their tax autonomy.
In the Bundesbank’s assessment, the late school holidays this summer considerably strengthened economic performance in July. Holiday-related output losses in July were smaller than is usual at this time of year, thus overstating economic activity, according to the latest Monthly Report. Bundesbank economists therefore expect a countermovement for August.
Euro-area banks have taken up a total of €82.6 billion in the Eurosystem's first round of targeted longer-term refinancing operations (TLTROs). Bundesbank Executive Board member Joachim Nagel sees the lacklustre take-up as a sign of reduced dependence on Eurosystem funding.
The accession of Lithuania as the euro area’s 19th member state as from the beginning of 2015 will trigger a new voting procedure, in which the voting rights of the national central bank (NCB) governors at ECB Governing Council meetings will rotate. This is designed to ensure that decisions can still be taken efficiently in future, too.