The ECB could return to its major programme of buying bonds next year, possibly meaning interest rates would stay low for much longer, but only if Bundesbank chief Jens Weidmann doesn’t get his hands on the top job at the central bank.

German business confidence unexpectedly rose in June to a record high, as strong domestic consumption and robust exports combined to make company executives increasingly upbeat about the growth outlook for Europe’s largest economy.

Germany’s Bundesbank has proposed reforms to streamline Europe’s response to future fiscal crises.

Strong private consumption, backed by low unemployment and rising wages, will sustain Germany’s economic upswing for some time to come, despite slower recent industrial performance, Germany’s Bundesbank said yesterday.