Bundesbank’s Nagel: German economy recovering but reforms still needed

Nagel's framing matters because it comes from the Bundesbank, the institution whose caution usually anchors German policy debate, and it implicitly accepts that the recovery is not self-sustaining without structural change. The remark carries weight for euro-area rate expectations, since a recovering Germany weakens the case for further easing, while the reform emphasis signals that growth remains fragile beneath the surface. Notably, the absence of any policy or timing detail leaves the ECB's next move unread. Whether Nagel's reform push translates into concrete German fiscal or supply-side measures, and whether other Governing Council members echo the recovery language, is the open question.