Financial assets grew by €192 billion to €7,143 billion in the first quarter of 2021, exceeding the €7 trillion mark for the first time ever. Additionally to increases related to the purchase of financial assets, this growth was driven in particular by valuation gains on shares and investment fund shares. 

The Bundesbank posted a profit of €5.8 billion for the 2019 financial year. Following adjustment of the reserves, the Bank also registered its highest distributable profit since 2008, at €5.9 billion, up from the previous year’s €2.4 billion. The Bundesbank has transferred the profit in full to the Federal Ministry of Finance.

The advantages or disadvantages firms experience as a result of their size, referred to in the economic literature as returns to scale, are of central importance in many economic models. Increasing returns to scale, whereby unit costs decrease as output volume increases, could explain productivity differences between Europe and the United States. We present fresh evidence on the returns to scale of European firms: most exhibit constant returns to scale, but a non-trivial share also show increasing returns to scale.

At midnight (CET) on 31 January 2020, the United Kingdom left the European Union. During a transition period, the United Kingdom will remain a member of the single European market and the customs union – after this period, however, Brexit could have far-reaching repercussions for the financial section and elsewhere.