“In a globally interconnected world, autonomy is an illusion,” Bundesbank President Joachim Nagel told the German “Frankfurter Allgemeine Zeitung” newspaper. But even so, Europe still needed to invest in certain areas in order to become more independent. Interviewed jointly with Martin Kocher, Governor of the Oesterreichische Nationalbank, they also spoke about the debt ratios of euro area countries, proposals for fiscal consolidation, and central bank independence.

“The digital euro will make us more independent and more resilient,” Bundesbank President Joachim Nagel said in an interview with the “Tagesspiegel” newspaper. A combination of cash and the digital euro will equip Germany best for the future and for critical situations. Nagel also used the interview to discuss the effects of US tariff policy and the opportunity it might present for Europe as an investment location.

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.

According to the latest Monthly Report, the number of banks in the euro area has roughly halved since 2002. Large financial institutions have become even larger, and the market has become more concentrated. New data now show that the impact of monetary policy on lending rates for enterprises has thus far not been weakened by the structural change in the banking market, the Bundesbank’s experts write.