Latest news with #JoachimNagel
Reuters
11 hours ago
- Business
- Reuters
ECB's Nagel says savings union more urgent than banking union
MILAN, June 19 (Reuters) - Creating a European Union savings union has become a matter of urgency, European Central Bank policymaker and Bundesbank President Joachim Nagel said on Thursday, adding a closer banking union could follow after that. European policymakers are seeking to foster deeper and more integrated capital markets across the often fragmented 27-member bloc. As part of that, they are pursuing a "savings and investments union" to try to encourage retail investors to fund the investments in energy, defence and technology European needs to bridge the productivity gap with the United States and China. Europe has fallen behind the other major global economic powers, posing a threat to its citizens' living standards. Given growing competition among economic blocs and tense relations with the United States, where a large portion of European savings has typically been invested, Nagel said there was no time to lose. "I think the first step, I believe this is of utmost importance, is to establish the savings and investment union, to do much more here. I think this is now of utmost importance," Nagel told a student conference in Milan. "And then in the next step, we can do the banking union," he said. Speaking at the same conference, UniCredit ( opens new tab CEO Andrea Orcel said the EU needed to become more competitive, which he has perviously said would happen if European banks were allowed to grow in size to better compete with U.S. rivals. Orcel, whose ambitions to take over Commerzbank ( opens new tab have stalled due to strong German opposition, complained about the barriers raised by European governments against the bank's consolidation efforts. Nagel said he shared Orcel's view about the need for Europe to become more competitive, and reiterated his support for a banking union. But he said he thought the banking union was first of all about more uniform rules across different markets, with countries adopting a neighbour's best practice standards wherever necessary, and then consolidation could follow.
Business Recorder
15 hours ago
- Business
- Business Recorder
ECB will keep doing all is needed to meet inflation goal, Nagel says
MILAN: The European Central Bank (ECB) will keep doing all that is necessary to complete its nearly accomplished mission on inflation, one of its top policymakers, Bundesbank President Joachim Nagel, said on Thursday. Annual euro zone inflation fell to 1.9% in May, from 2.2% in April, EU statistics office Eurostat said on Wednesday. Speaking at the Young Factor student conference in Milan to promote financial literacy, ECB Governing Council member Nagel said that bringing euro zone inflation to the 2% target was the best thing the central bank could do to promote economic growth. 'I guess this year we are coming close to our target, 2% on average, that is more or less mission accomplished,' the German central banker said, adding that the ECB has been shown to be good at using a wide range of tools to achieve price stability. 'We are now in the neutral territory of monetary policy,' he said. 'So I believe that we are on the right track when it comes to monetary policy. … We will do what is necessary, we did it in the past.' ECB has learned its lesson about ills of easy money, de Guindos says ECB Vice President Luis de Guindos, at the same conference, said the ECB would stick to a data-dependent, meeting-by-meeting approach to monetary policy given the high level of uncertainty linked to geopolitical developments. In Milan on Wednesday, ECB policymaker and Bank of Italy Governor Fabio Panetta said the ECB would retain a flexible approach, pointing to forecasts indicating that euro zone inflation would undershoot the ECB's 2% target for an extended period of time. Bank of Portugal Governor Mario Centeno said on Wednesday at the student conference that weak economic growth in the euro zone could prevent inflation from hitting the ECB's target. However, Nagel stressed that the ECB's mandate was solely price stability, so it did what it could within that remit, laying the ground for politicians to do the rest.
Reuters
16 hours ago
- Business
- Reuters
ECB will keep doing all is needed to meet inflation goal, Nagel says
MILAN, June 19 (Reuters) - The European Central Bank has shown to be very good at using a wide range of tools to achieve price stability and will keep doing all that is necessary to complete its nearly accomplished mission, one of its top policymakers said on Thursday. Speaking at a student conference in Milan, European Central Bank Governing Council member Joachim Nagel, who heads the German central bank, said that bringing inflation to target was the best thing the ECB could do to promote economic growth. Price stability provides a stable base for politicians to do what is necessary to drive economic growth, he said.
Zawya
17 hours ago
- Business
- Zawya
ECB will keep doing all is needed to meet inflation goal, Nagel says
The European Central Bank has shown to be very good at using a wide range of tools to achieve price stability and will keep doing all that is necessary to complete its nearly accomplished mission, one of its top policymakers said on Thursday. Speaking at a student conference in Milan, European Central Bank Governing Council member Joachim Nagel, who heads the German central bank, said that bringing inflation to target was the best thing the ECB could do to promote economic growth. Price stability provides a stable base for politicians to do what is necessary to drive economic growth, he said. (Reporting by Valentina Za, editing by Alvise Armellini)
Yahoo
4 days ago
- Business
- Yahoo
ECB should neither signal pause nor rate cut, Nagel says
FRANKFURT (Reuters) -Euro zone inflation is now on target and no sustained undershooting is likely but the ECB should keep all of its options open for future policy moves amid exceptional uncertainty, Bundesbank President Joachim Nagel said on Monday. The ECB has cut interest rates eight times since last June but signalled a pause in policy easing for July and markets now see just one more cut, possibly at the end of the year, taking the deposit rate to 1.75%. But Nagel said the environment could shift so quickly that committing now to either a pause or a cut would not be sensible and that the ECB should remain flexible. "Rather, we must keep our eyes and ears open for the risks to price stability," he told a conference in Frankfurt. "This is also true in light of current developments in the Middle East." Nagel said he expected German economic growth to stagnate in the second quarter and predicted that the global trade war could cost Germany three-quarters of a percentage point in growth over the medium term. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
