The head of Germany’s Bundesbank has called on Berlin to soften its tough spending rules, warning that Europe’s largest economy faced a “complicated” and “weak” outlook. Germans are set to head to the polls in February, with the post-pandemic stagnation of Europe’s largest economy feeding into widespread voter discontent with Chancellor Olaf Scholz’s ruling coalition.
Nagel said he was still confident that the country could overcome any crisis, saying: “Past experience shows that when Germany is feeling the pain, Germany will change.” He singled out discussions over reform of the constitutional debt brake as an example of how Germany could cope.
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