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Bundesbank Chief Nagel Urges Longer Working Lives, Warns Germany And Europe Could Fall Behind

He sees scope for a modest 2026 upturn if future-focused public spending materializes.

Overview

  • Nagel says an aging society requires longer careers to preserve the prosperity built after the war.
  • He warns that failing to confront uncomfortable competitiveness issues risks a setback for Germany and Europe.
  • He calls the ECB’s decision to hold rates appropriate and says December projections will guide any next steps.
  • He rules out selling Bundesbank gold reserves to relieve the federal budget.
  • The government still forecasts 1.3% growth in 2026, with planned infrastructure and defense spending expected to provide support.