Bundesbank President Joachim Nagel Image: AFP
The President of the Bundesbank, Joachim Nagel, called on the federal government to exercise budgetary discipline and criticized the special funds for being ‘not very transparent’.
The President of the Bundesbank, Joachim Nagel, called on the federal government to exercise budgetary discipline and criticized the special funds as “not very transparent”. “It was necessary to help to secure livelihoods, to support families and companies,” Nagel told the newspapers of the editorial network Germany (RND, Wednesday editions). “In this respect, it was right that the federal government reacted decisively here – regardless of criticism of individual measures.”
Things often had to be done quickly back then, and things were certainly not always finely polished, Nagel continued. “However, now is the time to put the measures to the test.” This is not only necessary for solid state finances, “but also so that we can overcome high inflation”. More widespread government spending in particular is contributing to the fact that prices would rise, said Nagel. Eventually they increased the demand.
Nagel sharply criticized the various special funds of the federal government in addition to the state budget in the RND newspapers. “My worries are not related to the current budget, but to the huge special funds outside of it.” These are “not very transparent and have high deficits”. The good news is that, for example, gas price support might not require that much money. However, any remaining money should not be spent elsewhere.
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