In an interview with the “Handelsblatt”, Bundesbank President Joachim Nagel countered the image of Germany as the sick man of Europe:
I think this is a misdiagnosis. However, he cited major challenges facing Germany, such as demographics, as well as the necessary digitalisation and decarbonisation. To a degree, according to Mr Nagel, the Eurosystem had made good strides in the fight against inflation, but was still far from meeting the 2% target. He added that the Governing Council of the ECB would discuss on 14 September whether to increase interest rates, also based on new projections that would then be available.