Bundesbank chief slams EU’s reform paralysis as economic risks grow

A blunt warning from Germany’s top banker exposes Europe’s reform gridlock. Will policymakers act before stagnation takes hold?

, and Administrator

2025 December 3 . 1:29 AM

1 min read

There are few cars,buildings in the right corner and there are few other buildings in the left... — There are few cars,buildings in the right corner and there are few other buildings in the left corner.

Bundesbank chief slams EU’s reform paralysis as economic risks grow

Bundesbank President Joachim Nagel has criticised the slow pace of reform in Germany and the European Union. He warned that delays in decision-making are threatening economic stability and future prosperity. His calls for urgent action come as key proposals, including pension reforms and competitiveness measures, remain stalled.

Nagel highlighted deep frustration with the EU’s sluggish progress, pointing to the Draghi report on competitiveness, which has seen no meaningful advancement in over a year. He blamed excessive bureaucracy and a lack of political urgency, arguing that Europe can no longer accept slow processes as inevitable. Instead, he demanded clear mandates and strict timelines for future reforms.

Nagel’s proposals set a clear direction: pension adjustments, administrative efficiency, and binding reform deadlines. The pressure is now on German and EU policymakers to act. Without rapid changes, he cautioned, economic stagnation and heavier burdens on future generations will follow.