Nagel: inflation will return to the ECB's 2% target by the end of the year

Joachim Nagel, a member of the Governing Council of the European Central Bank (ECB), stated in an interview with the BBC that inflation in the eurozone is expected to return to the ECB's 2% target by the end of 2025. He described this outlook as positive news for the region.

Despite the ECB's economic forecasts suggesting that the target will be reached in early 2026, Nagel remains optimistic. Referring to Europe's plans to increase spending on military and infrastructure projects, he expressed hope that these initiatives would strengthen European integration. In his view, cooperation should extend beyond just defense spending.

When discussing the trade tariffs imposed by Washington, Nagel highlighted Germany's particular vulnerability. Given its export-oriented economic model, the country faces heightened risks due to rising tariffs. He warned that such a situation, combined with ongoing uncertainty and unpredictable factors, could even trigger a recession this year.