Germany has profited 100billion euros by the Greek economic crisis

German Chancellor Angela Merkel has drawn criticism for her stance on Greece and some have urged Germany to pass on the savings to Greece to help speed the country’s economic recovery. That’s a finding of a leading economic research institute.

According to the institute, German bond rates declined by 300 basis points during the last five years, saving Germany interest payments of more than 3 percent of its gross domestic product (GDP).

It continued: “Even if Greece indeed does not repay any of its loans, Germany comes out ahead”.

“Germany benefited substantially from the Greek crisis”. That increased demand has sent interest rates on German debt issues falling.

German lawmakers are likely to the Greek debt disaster as a legal responsibility to their residents’ personal pocketbooks. As Greece has appealed for debt relief in the form of principal writedowns or restructuring, hardline officials like German Finance Minister Wolfgang Schäuble have argued that such a move would come at the expense of German taxpayers.

But the Halle Institute authors write that these political calculations should factor in the financial benefits Germany has enjoyed from being a safe alternative as other European economies foundered.

Greece and its creditors – the European Central Bank, the global Monetary Fund and the European Stability Mechanism – are working on the draft of a crucial new bailout of up to 86 billion euros ($94 billion) in exchange for further reforms. Larry is our main news editor.

The extent of the damage to the Greek economy and workforce caused by capital controls imposed on the country has been revealed by new government data, which suggests that the limitations contributed to a 15-year high in job dismissals during the month of July. Even Schäuble has agreed that Greece’s debt burden is unsustainable with out some type of restructuring, although as a matter of coverage he refuses to entertain the notion. 5 billion debt reimbursement August. 20.