In
my post Germany 1 – Team GB 0 (follow the link below), I commented on Germany
being less and less reliant on selling to the Eurozone. Not good news if you
are in need of German goodwill to prop you up financially.
There
has always been an assumption that Germany would (sooner or later) move further
and further away from the Eurozone, as the weaker members were effectively
dragging them down. In essence, Germany are only as strong as the weakest link
in the Eurozone.
Some
interesting news this week……
Top
level economists in Europe have calculated that it has cost Germany €600
billion to keep the Eurozone together. However, it also calculated that it
would cost Germany €1.2 trillion to let the Eurozone collapse. And this answers
very nicely the question on many lips as to why Germany have stuck at it.
Add
to this the German Election in September 2013, and it is safe to say that the
Eurozone will be held together very tightly……well for the next 9 months anyway.
2014
could see an interesting unravelling of Greece and in effect Germany could pay
them to leave (they’ve got a €600 billion kitty to play with after all).
Saved
for another year!
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