The new Bundesbank President sees himself as a team player in the Governing Council.
(Photo: Reuters)
Frankfurt The new Bundesbank President Joachim Nagel expects the war in Ukraine and the sanctions to have a significant economic impact. “Now we are experiencing painfully how dependent we are on Russian raw materials,” he says in an interview with the Handelsblatt. Business and politics now wanted to reduce this dependency. “This means a major, ongoing restructuring process. It overlaps with the energy transition, but should be much faster.”
Nevertheless, Nagel is not currently anticipating stagflation, i.e. a scenario of high inflation and economic weakness. He thinks the decision of the ECB, unlike the US Federal Reserve, not to commit to interest rate hikes for the time being, is correct. The European Central Bank must remain flexible.
Read the whole interview here:
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