Monetary policy meets urban policy – this was the theme of a podium discussion with Bundesbank President Joachim Nagel and Sven Schulze, Mayor of Chemnitz, that took place as part of festivities celebrating “Chemnitz 2025”. The two answered questions from visitors and the moderator on the topics of inflation, the digital euro and economic growth. The event was moderated by Anja Heyde, TV presenter at MDR.

The city of Chemnitz is a European Capital of Culture this year. To mark the occasion, the Regional Office in Saxony and Thuringia is organising a range of events at the Bundesbank’s Chemnitz branch.

Positive signal for inflation developments

The discussion also covered the topics of price stability and perceived inflation. Central bankers compare prices in terms of annual rates of increase, but members of the public compare them with the prices they paid before a given bout of inflation began, Mr Nagel explained. This was something he could relate to based on his own weekend shopping, he said. At the same time, however, he told those present that inflation now stood at 2 % over the medium term thanks to the ECB’s monetary policy and was therefore on a good path.

Nagel: Germany can cope with off-budget special fund

Another key topic was the Federal Government’s planned special fund. The two fiscal packages will increase the debt ratio by four percentage points to a level still below 70 %, noted Mr Nagel with regard to the additional government expenditure on defence and infrastructure. According to the Bundesbank President, Germany can cope with the special fund. It was, however, crucial, he added, that the Federal Government implement targeted measures swiftly and efficiently, and that public finances are not overstretched in the process.