Germany’s central bank has scrapped plans to return to its iconic but controversial headquarters in Frankfurt, opting instead to purchase new downtown offices. The decision follows a decade of delays and criticism over the €3.3bn redevelopment project, which included spending €168mn on asbestos removal from the 1970s brutalist structure. The move marks a shift from the Bundesbank’s earlier vision of transforming the building into a modern “campus” for its 5,400 Frankfurt staff. Bundesbank president Joachim Nagel emphasized the financial burden, stating that even a scaled-down version would cost €1.6bn—far exceeding alternatives.

The bank now plans to retain the site’s underground vaults, which hold half of Germany’s gold reserves, while negotiating with the city to sell the remaining land. The city aims to use proceeds to relocate the oversubscribed Frankfurt European School, which has relied on temporary container classrooms funded by the European Central Bank. Nagel acknowledged the decision’s symbolic weight, calling it the end of an era tied to monetary policymakers like Karl Otto Pöhl.

The historic building, listed as a landmark in 2022, once symbolized Germany’s “stability culture” during the Deutschemark era. Critics had long questioned the project’s feasibility, citing bureaucratic delays and soaring costs. By abandoning the redevelopment, the Bundesbank avoids further financial strain but leaves the city grappling with its legal obligation to house the school.

The move underscores tensions between preserving institutional heritage and adapting to modern fiscal realities. With talks underway for a downtown purchase, the Bundesbank aims to finalize a deal within 18 months, signaling a pragmatic pivot amid economic uncertainty.