To date, European climate policy has not yet led to widespread relocations of energy-intensive production abroad by domestic firms, the Bundesbank concludes in its latest Monthly Report. In this, the Bundesbank’s economists examine the impact of the EU Emissions Trading System (EU ETS) on the foreign direct investment decisions taken by German manufacturing sector enterprises. The Bank’s experts conclude that favourable framework conditions that encourage innovation in low-emissions technologies are needed in order to prevent domestic production from being relocated in the future, too.

With effect from Monday, 2 September 2024, Dr Sabine Mauderer was appointed Vice-President of the Bundesbank. Furthermore, Lutz Lienenkämper and Michael Theurer joined the Bundesbank’s Executive Board. The responsibilities within the Executive Board have therefore been reallocated. The following reallocation of responsibilities comes into effect

“We’ve ridden out the big wave of inflation,” said Bundesbank President Joachim Nagel in an interview with the “Frankfurter Allgemeine Zeitung” (FAZ). The euro area is well on the way to hitting the inflation target of 2 % by the end of 2025, he added. Asked whether the ECB Governing Council will lower interest rates for a second time in September, Nagel said that it would depend on the data. He also spoke about the ECB’s forthcoming strategy review and the state of the German economy.

Contrary to expectations, German economic output fell slightly in the second quarter of 2024, the Bundesbank writes in its latest Monthly Report. Real gross domestic product (GDP) recorded a quarter-on-quarter decline of 0.1% on a seasonally adjusted basis. Despite stabilising demand, industrial output resumed its downward trend in the second quarter. In the first quarter, it had experienced a brief recovery.