Bundesbank President Jens Weidmann expects Brexit to place a strain on Germany's economy. It is in the interests of both parties, he says, for the EU and the United Kingdom to quickly enter into level-headed negotiations on their future relationship.

The October 2023 edition of the Monthly Report examines whether German and euro area price competitiveness is favourable. It also describes how state government finances developed in 2022 and finds that, despite large surpluses overall, recourse to emergency loans was extensive in some cases.

The German economy was buoyant during the first three months of the year. The Bundesbank economists, writing in the latest Monthly Report, expect economic output to remain on a marked upward trajectory in the second quarter. Another topic they discuss is what needs to be done to strengthen the regulatory framework underpinning European monetary union.