We present and discuss a systematic calculation, based on two-loop chiral perturbation theory, of the pion-nuclear s-wave optical potential. A proper treatment of the explicit energy dependence of the off-shell pion self-energy together with (electromagnetic) gauge invariance of the Klein-Gordon equation turns out to be crucial. Accurate data for the binding energies and widths of the 1s and 2p levels in pionic 205Pb and 207Pb are well reproduced without need for a notorious "missing repulsion" in the pion-nuclear s-wave optical potential.
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