The Bundesbank is expanding its reform proposals for central government’s debt brake. With regard to the debt ratio, Germany is doing well by international standards. Our reform proposal for the debt brake preserves sound public finances whilst at the same time facilitating urgently needed investment, Bundesbank President Joachim Nagel said. The concept supports measures needed to strengthen infrastructure and defence whilst ensuring sustainable public finances over the long term, in line with European rules.

As in 2023, the monetary policy measures of the past few years shaped the Bundesbank’s annual accounts in the 2024 financial year. It recorded an accumulated loss of €19.2 billion for the reporting year, Bundesbank President Joachim Nagel and First Deputy Governor Sabine Mauderer said at the press conference presenting the Bank’s annual accounts. The Bundesbank has a sound balance sheet, Mr Nagel stressed, explaining that the value of its revaluation reserves was many times greater than the current and prospective accumulated losses.

According to the current issue of the Bundesbank’s Monthly Report, German economic output fell surprisingly significantly in the fourth quarter of 2024. The main reasons for this were declining exports and weak industrial output, especially in the automotive sector, while private and government consumption expenditure rose. The labour market outlook also suggests a continued cooldown.

The Bundesbank registered roughly 72,400 counterfeit euro banknotes in German payments in 2024. Thus, the number of counterfeits was up by 28 % compared with the previous year. At the same time, however, the loss arising from counterfeiting went down. Overall, the incidence of counterfeit money remains moderate in scale: statistically speaking, in 2024 there were nine counterfeit banknotes per 10,000 inhabitants, said Burkhard Balz, member of the Bundesbank’s Executive Board.