July 22, 2012
Eurozone Crisis Saves Germany Tens of Billions
Germany has emerged as one of the biggest beneficiaries of the European financial crisis.
While other countries in 17-country group that use the euro have battled against investor fears that their economies are buckling under the pressure of too much debt, Germany has managed to save tens of billions of euros thanks to its reputation as a safe place for investments.
The bond markets have demanded that countries such as Italy and Spain pay prohibitively high borrowing costs rates to sell their debt amid worries over their sluggish economies and creaking government finances. Such high interest rates will burden these countries' state coffers for years to come.
Financially healthy Germany, meanwhile, has secured billions of euros in debt at record low — sometimes negative — interest rates.