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BERLIN (AFP) - Germany, which has taken a tough line on Greece, has profited from the country's crisis to the tune of 100 billion euros ($109 billion), according to a new study Monday. The sum represents money Germany saved through lower interest payments on funds the government borrowed amid investor "flights to safety", the study said. "These savings exceed the costs of the crisis -- even if Greece were to default on its entire debt," said the private, non-profit Leibniz Institute of Economic Research in its paper.
Finance Minister Wolfgang Schaeuble has opposed a Greek debt write-down while pointing to his own government's balanced budget. The institute, however, argued that the balanced budget was possible in large part only because of Germany's interest savings amid the Greek debt crisis. The estimated 100 billion euros Germany had saved since 2010 accounted for over three percent of GDP, said the institute based in the eastern city of Halle.
When investors are faced with turmoil, they typically seek a safe haven for their money, and export champion Germany "disproportionately benefited" from that during the debt crisis, it said.
"Every time financial markets faced negative news on Greece in recent years, interest rates on German government bonds fell, and every time there was good news, they rose."
originally posted by: Telos
When the WW2 ended and Germany was put to severe restrictions regarding its military power, military build up and the weaponry, many thought that this country was finally put down to its knees and will be a "YES MAN" forever. They forgot one thing though, countries like Germany cannot be put down, cannot be treated like a homeless asking for charity and cannot be considered defeated only because you forbid them to become a military power. And yes, they found the way to dominate economically most of the industrialized countries in the world. After the amazing recovery of the post war era, they've shown once again to the world that they're a great nation which still carries the pride its legendary teutonic knights. And cannot be otherwise. A country that has given so much in science, art a culture to the world deserve to lead.