ECB’s Müller: Central Scenario Is a Gradual Economic Recovery

8 October 2025

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Madis Müller on Wednesday predicted a gradual recovery of the euro area’s economy.

In remarks at the International Conference on Finance in Tallinn, Müller, who heads Eesti Pank, said, “The base case for us still is now that there is a gradual recovery.”

Incomes and purchasing power were increasing, he argued. “That supports also consumption, domestic demand and sort of a gradual recovery, even if we are likely to have difficulties when it comes to exports contributing much to growth in the next couple of years,” he said.

Inflation was essentially at target and in this regard “things look stable,” he said.

There were however risks, he said, citing geopolitics as well as “the increasing debt levels in many European countries.”