Germany gained 100 bn euros from Greece crisis: study

Another interesting turn of events with Greece, we knew that Greece's economy was hurt by Germany's strong economy influencing the Euro*, but that Germany had profitted from the downfall of Greece is news:

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.

source

*Under normal economic conditions money goes down in value as a countries economy tanks, which in turn stimulates exports. However in the case of Greece the Euro stayed strong as it is tied to other countries with stronger economies.

Germany was smart to borrow at low interest rates.
Good for them.

a reply to: Bluntone22

Really???

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."

Although this does not come as a shock, what it does demonstrate quite clearly, is Germany's intentions on remaining the power house of Europe.

They profited off of a Greek collapse and they would not hesitate to do so again, off any Eurozone country.

They own Greece and they haven't lost one German citizen in the process. This is what the E.U is all about I'm afraid and Germany's true colours, including some German citizens has been shameful. Along with other supporting actors which included the U.K and even the U.S to some extent with Greece being a NATO member.

a reply to: AlaskanDad


The bonds of other countries -- including the United States, France and the Netherlands -- had also benefited, but "to a much smaller extent".

Sound to me like everybody made money, Germany just did it better.

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.

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.

'deserve to lead'? forgot to take your meds?

your post is disturbing at best - or even sickening actually.