In an interview with FOCUS online, Bundesbank Executive Board member Burkhard Balz explains why the digital euro is necessary and the challenges involved. Our objective as Eurosystem central banks is to launch a pilot operation in mid-2027. As before, we still expect the digital euro to go live in 2029, Mr Balz said.

The nominal effective exchange rates of the euro condense bilateral exchange rates against multiple countries into a single index. As an aggregate, they capture changes in euro exchange rates against various groups of currencies of key trading partners.

The German economy followed a slight upward trend towards the end of 2025, the current Monthly Report states. Industry is expected to have picked up again, although exports probably saw another decline, partly owing to weak exports to the United States. Private consumption is likely to have contributed to the increase in gross domestic product, thanks to significantly higher wages. Inflation dropped significantly to 2.0 % in December.

Germany’s current account recorded a surplus of €15.1 billion in November 2025, up €0.3 billion on the previous month’s level. Although the surplus in the goods account decreased, the swing to a surplus in invisible current transactions, which comprise services as well as primary and secondary income, was slightly stronger.

The Monetary Authority of Singapore (MAS) and the Deutsche Bundesbank today signed a Memorandum of Understanding (MoU) regarding collaboration on cross-border digital asset settlement.

In a piece for the Financial Times, Executive Board member Michael Theurer has addressed the issue of the sovereign-bank nexus. This close link between banks and their home-country sovereign debt represents a significant threat to financial stability in the euro area. Breaking this cycle is crucial to safeguarding the stability of the euro area financial system, Theurer emphasises.

The same methodology as the real effective exchange rates of the euro is used to calculate price competitiveness indicators for individual euro area countries. 

The decision to apply these standards was based on their design and successful implementation in various areas, including logistics, making them a feasible, secure and future-proof investment for all participating parties.