Bundesbank President Joachim Nagel said the eurozone economy has held up well, but warned that stronger structural reforms are still needed to support long-term growth. His remarks came as the European Central Bank prepares for its next policy decision.

Nagel pointed to signs of resilience across the currency bloc, suggesting the region has so far avoided a sharper slowdown. Even so, he argued that policymakers should not mistake stability for strength, saying deeper reforms are necessary to improve competitiveness and raise growth potential.

The comments add to the debate inside Europe over how much support the economy still needs and how much of the burden should fall on governments rather than the central bank. With inflation and growth both under close watch, the ECB is facing pressure to balance caution with action.

Nagel’s message reflects a broader concern among policymakers that without changes to labor markets, investment rules, and productivity, the eurozone could remain vulnerable to weaker performance over time. The ECB is expected to weigh those risks as it sets its next move.