Germany earns 100 billion euros from European debt crisis

Due to the debt crisis in the Eurozone, investors have flocked to buy German government bonds.

Illustrative photo. (Source: AFP/VNA)

As a result, Germany's public budget has saved a large amount of interest and according to a recently published study, since 2010 alone, Germany has earned about 100 billion euros.

According to a report by the Leibniz Institute for Economic Research (IWH), Germany has benefited greatly from the debt crisis in the Eurozone, especially the crisis in Greece, in which from 2010 to now, the country's public budget has saved about 100 billion euros, equivalent to about 3% of the country's GDP.

The report stressed that due to the crisis, investors wanted to seek safety for their money and gave priority to buying German government bonds, which were assessed by credit rating agencies as having very low risk.

Not only Germany, other countries such as the US, France or the Netherlands also benefited with their government bonds, but at a smaller level.

The IWH also said that the credit that Germany benefits from the crisis has exceeded the crisis losses, even in the event of Greece defaulting on all of its debt.

However, whether Germany's credit gains from the crisis actually exceed its crisis losses is debatable.

According to IWH, every time the financial market receives negative news about Greece, German government bond yields fall, and when there is positive news, bond yields rise.

IWH also believes that Germany is only able to achieve budget balance with the interest savings gained in the context of the Greek debt crisis./.

According to VIETNAM+