The bell is the President of Deutsche Bundesbank, Joachim Nagel For the German economy warning the next government that it is inheriting an economy that could remain stagnant for the third consecutive year.

“It is not possible to exclude a third consecutive calendar year without growth,” Nugel said at a press conference during the Bundesbank annual report on 2024 which showed another heavy loss of € 19.2 billion for the federal bank .

“This makes it even more important to take the new federal government quickly effective measures.”

Nugel commented on the results of the elections by greeting what he described as “a clear government order and a possible choice of a coalition government”.

Europe’s largest economy has shrunk slightly in the last two consecutive years. High energy prices, green transformation and demographic change exert particular pressure on the export sector, Nagel said, adding that high taxes and growing bureaucracy exacerbate the situation.

“The smart, consistent and reliable economic policyminding policy can release a sense of change and increase the willingness of greater investment,” Nagel said.

At the same time, it tried to downplay speculation about how far and how quickly the European Central Bank can continue to reduce interest rates, after five reductions in the last eight months that have reduced the basic deposit rate to 2.75% from historical high of 4%.

“In the current uncertain environment, we cannot earn anything publicly publicly that we could find in our interest rate policy, summer or end of the year,” he warned.

Nugel pointed out that the losses will continue for a few more years, but they should begin to decline from now on.