Germany gains from Greek debt crisis according to study
- 9 years ago
Germany has saved 100 billion euros thanks to the Greek debt crisis. That’s a finding of a leading economic research institute.
Investors fled to the safety of German bonds pushing down the interest rates on those bonds. In turn paying less interest helped the government save more than three percent of gross domestic product.
In its study the Halle-based Leibniz institute for economic research created a fictitious “normal” situation to establish what German interest rates would have been.
It then calculated that the total savings since 2010 far outweigh the cost of the eurozone crisis to the German economy.
Investors fled to the safety of German bonds pushing down the interest rates on those bonds. In turn paying less interest helped the government save more than three percent of gross domestic product.
In its study the Halle-based Leibniz institute for economic research created a fictitious “normal” situation to establish what German interest rates would have been.
It then calculated that the total savings since 2010 far outweigh the cost of the eurozone crisis to the German economy.