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Bundesbank rejects debt cancellation, warns of hyperinflation risk

Joachim Nagel, president of the Bundesbank, describes debt cancellation as 'opening Pandora's box'.

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The fact

His stance comes amid a European debate on public finance sustainability.

He warns of a collapse in currency confidence and potential hyperinflation.

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Why it matters

La position de la Bundesbank influence directement les négociations européennes sur la gestion de la dette souveraine, notamment dans le cadre des règles budgétaires révisées de l'UE. Une annulation de dette, si elle était envisagée, pourrait modifier les conditions de financement des États membres et les attentes des marchés financiers.

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