Germany

No Picture

Bankinter: “Germany has too much to lose if the euro breaks down”

By Consenso del Mercado | After the difficulties Germany experienced in placing its bonds last week, it seems to have somehow relaxed its official position and be willing to let the ECB buy the required massive amounts of sovereign debt, even though under certain conditions. In this regard, Spanish Bankinter analysts argue that Germany is the country that would be the least interested in a euro breaking down. Here´s why….


No Picture

Spain in better shape than Germany, according to Der Spiegel

The newspaper El Economista alluded in its Wednesday edition to an article appeared in the magazine Der Spiegel, in which the German publication criticises the German government “because it likes to pride itself of its solid finances, when Germany’s budget management is not exemplary and the national debt could be above the EU limit.” These are some of the most direct statements made in Der Spiegel to chancellor Angela Merkel:…


No Picture

JP Morgan: “France-Germany spread is the highest of all times”

On Thursday Spain had to pay 6.975% interest to borrow money at 10 years: a spread of 480bp against the German rate. It is the highest rate Spain has had to pay since it became part of the euro zone. However, analysts at JP Morgan remarked that France’s differential compared to Germany’s “is not only the highest since the euro exists, but the highest of all time.” On the other…


No Picture

“Germany’s Inflation Fetish”

NEW YORK | Debt market turmoil and Spain’s borrowing squeeze is now hot news in the US. Experts are talking about investors fears, record-high interest rates and credit freeze but some of them are also lining up for an idea: Berlin and others with big surpluses need to save less and spend more. For The Huffington Post Business editor, Peter S. Goodman, “Germany’s inflation fetish is a major global economic…



No Picture

Juncker: “Germany’s debts are higher than Spain’s, but nobody wants to hear this”

The Prime Minister of Luxembourg and chairman of the Eurogroup Jean Claude Juncker made stark remarks on the “disturbingly large amount of the German debt,” which the Bonn paper General Anzeiger published on Thursday. “‘Germany has a higher debt than Spain. But nobody here wants to acknowledge this,’ said Juncker, who expresses understanding regarding the fears of Germany caused by the current financial crisis. “‘Here (in Germany) they witnessed, twice,…


No Picture

“Germany must allow the ECB to inject €3tr”, says Morgan Stanley

By Julia Pastor, in Madrid | The shared understanding between Berlin and Paris, that is, between chancellor Angela Merkel and president Nicolas Sarkozy, has suffered a breakdown for the first time since the euro crisis began. The reason is their different views on what role the European Central Bank (ECB) should be playing for the euro crisis to find a way out. While France defends giving the European Financial Stability…