Bundesbank President Jens Weidmann: “Wide-reaching measures are crucial”
Despite differing points of view being raised in the consultations on the ECB’s new asset purchase programme, it was unanimously agreed that action needs to be taken in light of the corona crisis. “Now it is a matter of implementing the programme in an appropriate way,” said Bundesbank President Jens Weidmann in an interview with the German newspaper “Die Welt”.
German general government debt down in 2019 to €2.05 trillion
General government debt in Germany was down by €16 billion in 2019 to €2.053 trillion. The debt ratio – the ratio of debt to nominal gross domestic product – therefore fell to 59.8%, dropping below the Maastricht Treaty’s reference value of 60% for the first time since 2002. However, given the coronavirus pandemic and the associated costs, general government debt will rise again sharply in 2020.
Corona pandemic causing German economy to slide into pronounced recession
Germany is facing unprecedented challenges as a result of the rapid spread of the coronavirus pandemic, according to the Bundesbank’s latest Monthly Report. The experts regard a slide into a marked recession as being unavoidable. An economic recovery would set in only when the pandemic risk had been effectively brought under control.
Bundesbank economists have studied the factors that have influenced Germany’s TARGET balances over the past 20 years. The results show that the growth of the balances can be divided into four periods. The decline in German TARGET claims in 2018 and 2019 was due in large part to lower and, for a time, discontinued net asset purchases of the Eurosystem, write the Bundesbank’s experts.