Bundesbank chief warns Europe must adapt to geoeconomic fragmentation and energy costs

Bundesbank President Joachim Nagel, in a London speech, argues Europe has not fully absorbed the shift to geoeconomic fragmentation and questions whether it has the energy capacity to cope. The speech signals central-bank concern over structural supply-side pressures from trade and energy realignment, implying persistent inflation and growth drag for the euro area. Uncertainty remains over policy response, but the tone suggests a hawkish bias on inflation risks.