Germany’s Bundesbank Warns of Uncertainty Amid Middle East Tensions

In a recent speech at the Euro Finance Summit in Frankfurt, Joachim Nagel, President of Germany’s central bank (Bundesbank), warned about escalating uncertainties due to geopolitical tensions, particularly following Israel’s attack on Iran. He emphasized that ‘exceptional uncertainty seems almost to become the new normal.’ Nagel highlighted how prolonged conflicts in the Middle East could significantly impact oil prices and economic prospects globally. Furthermore, he pointed out the challenges in predicting inflation and interest rates amidst tax and fiscal policy changes. Meanwhile, discussions in Europe extend beyond economics, as the EU pushes for transparency from energy companies importing Russian gas, including Greek firms DEPA and Metlen. Back home, stakeholders in renewable energy are preparing for negotiations over production cuts, while concerns grow about potential financial impacts if Middle Eastern conflicts escalate.