Germany’s central bank, the Bundesbank, announced it will abandon its 1970s-era Frankfurt headquarters and acquire a new location. This decision follows a political controversy surrounding escalating renovation expenses. The Bundesbank’s move aims to put an end to criticism amidst growing political pressure on central banks globally. The Bundesbank is the central bank of the Federal Republic of Germany and, as such, part of the Eurosystem. It contributes to monetary policy while promoting financial stability.
Bundesbank President Joachim Nagel stated that an economic feasibility study indicated purchasing a new property is significantly more cost-effective than remaining at the current location. Refurbishing the existing building, a prime example of Germany’s brutalist architecture, would cost €1.6 billion. Maintaining the structure through 2067 would require an additional €2.9 billion. The central bank will retain the 1,710 metric tons of gold stored in security vaults beneath the building.
The City of Frankfurt has expressed interest in purchasing the building to house the European School. Launched in 2016, renovations began in 2022 after staff relocated to a temporary office. However, costs surged due to inflation, hazardous material removal, and landmark protection regulations. A report by Germany’s audit office estimated costs at €4.6 billion by 2022, approximately one billion euros more than initially projected.
Nagel subsequently reduced the project’s scope, decreasing planned workspaces from approximately 5,000 to 3,000, reflecting the rise of hybrid working arrangements following the pandemic. The Bundesbank will now initiate a tendering process to identify a suitable new building.
