Eurozone News
LAST UPDATE: September 23, 2025
Euro needs enhanced global role but cannot overtake the dollar, Bundesbank says
The Bundesbank, Germany’s central bank, has stated that the euro should have a greater global role but cannot realistically replace the dollar as the world’s dominant reserve currency. The Bundesbank president said a stronger euro would protect the bloc from a potential sustained loss of confidence in the dollar due to erratic US policies. He called for stable fiscal policies and a more assertive military stance to help the euro gain international weight.
Insight
This news highlights the EU’s concerns about the US dollar’s stability and its impact on the global financial system. The Bundesbank’s comments reflect a growing sentiment that the EU needs to reduce its dependence on the dollar and strengthen the euro’s international standing. While it acknowledges the dollar’s enduring dominance, it underscores the strategic importance of enhancing the euro’s role as a potential safe haven.
Merz Taps Ex-UBS Banker Blessing as New German Investment Czar
German Chancellor Friedrich Merz has appointed veteran banker Martin Blessing as his personal representative for investment. Blessing’s role will be to attract foreign investment to Germany and improve its image as a business location. The appointment comes as Germany’s economy is struggling with high production costs and competition.
Insight
This appointment signals Chancellor Merz’s focus on reviving the German economy and his recognition of the need for a targeted approach to attract foreign capital. The use of a high-profile banker like Blessing is intended to signal to the international community that Germany is serious about its economic turnaround. This is a key step in Germany’s efforts to regain its economic footing.
Euro zone consumer confidence rises to -14.9 in September
Consumer confidence in the euro zone improved in September, rising to -14.9. The increase suggests that consumers are feeling more optimistic about the economic outlook. The data is a preliminary or “flash” estimate, but it indicates a potential positive trend for the euro zone economy.
Insight
This news is a positive economic indicator for the euro zone. Rising consumer confidence can lead to increased spending, which is a key driver of economic growth. The data suggests that the European Central Bank’s policies may be having a positive impact on consumer sentiment and could precede further economic recovery.
ECB’s Nagel Plays Down Fears That Strong Euro Will Hurt Exports
Bloomberg
Joachim Nagel, president of the Bundesbank and a member of the European Central Bank’s governing council, has downplayed concerns that the euro’s strength will harm the bloc’s exports. He argued that the euro’s performance should be measured against a wider basket of trading partners, not just the US dollar. The euro has gained significantly against the dollar in recent times.
Insight
This news offers a nuanced perspective on the euro’s value and its potential impact on the EU economy. Nagel’s comments suggest that the ECB is not overly concerned with the euro’s current valuation, which may indicate that the central bank is not planning to intervene to weaken the currency. This is a reassuring message for investors and businesses that a strong euro will not necessarily undermine the euro zone’s economic recovery.
