Bundesbank President Joachim Nagel and François Villeroy de Galhau, Governor of the Banque de France, spoke in a joint interview with Phoenix about “Germany, France and inflation – ways out of the crisis”. Their discussion centred on the question of when the current monetary policy stance will bear fruit and the ECB’s medium-term inflation target of 2% will be achieved again. “I am firmly convinced that we will see significantly lower inflation rates from 2024 onwards. We will reach 2% with the monetary policy measures we have initiated this year,” Mr Nagel said. Mr Villeroy de Galhau was also resolute: “We have to combat inflation and we will combat it.”

Besides current monetary policy and high inflation, the two central bankers discussed current relief packages put together by the German and French governments, the role of central banks when it comes to green finance, and plans for a capital markets union, which the two had just recently set out in an oped. Susanne Biedenkopf-Kürten and Michael Krons conducted the interview.