ECB’s Weidmann Says Worst of Recession Over, Long Recovery Ahead

(Bloomberg) -- Germany’s economy is on the mend but a full recovery will take years, according to Bundesbank President Jens Weidmann.

“Things are looking up,” he hold told a closed-door meeting of the finance committee of the German parliament, based on a summary released Wednesday on its website. Yet with public life not yet able to return to normal, the economy probably won’t regain its pre-crisis level until mid-2022, he was quoted as saying.

While momentum in Germany rebounded strongly over the summer and the government in Berlin raised its forecasts, officials have stressed the economy is still not back at full capacity.

Weidmann’s remarks came just hours after European Central Bank Executive Board member and fellow German Isabel Schnabel warned the ECB expects a protracted recovery in the euro area.

The Bundesbank chief’s discussion with lawmakers is the first of what are going to be quarterly hearings, introduced in the wake of the recent court ruling on the legality of the ECB’s quantitative easing program.

Weidmann repeated that the ECB’s coronavirus emergency measures, such as its 1.35 trillion euro ($1.6 trillion) emergency purchase program, must be scaled back as soon as the crisis is over.

He also voiced “fundamental skepticism” about extensive government bond purchases and reiterated that monetary policy should not get caught up in fiscal policy.

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