(Bloomberg) -- Euro-area inflation will return to the European Central Bank’s 2% target by the end of 2025, Governing Council member Joachim Nagel told the BBC.
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“We will achieve price stability this year,” the Bundesbank president said in an interview. “We are back to our target at the end of this year — this is good news.”
The ECB last week presented new economic forecasts that showed it reaching the 2% goal in early 2026. That was mainly due to energy prices, which retreated after the central bank’s cut-off date for the projections.
Asked about Europe’s planned boost in military and infrastructure spending, Nagel was hopeful.
“Now is this window of opportunity to do more in Europe, we should have more Europe and not less Europe,” he said, adding that this should go beyond defense spending.
Nagel also reiterated that Germany is particularly vulnerable to US President Donald Trump’s trade levies.
“When you are exposed to an export-oriented model, then you are more exposed in a situation when tariffs are going up and there are so many uncertainties, so many unknowns,” he said, adding that such measures could even trigger a recession this year.
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