Written by 12:32 pm Europe Economy

German debt: Europe’s €1trn debt ‘volcano’ likely to erupt and impact German economy, analyst warns

There is increasing pressure on the euro, whose weakness is causing severe and widening imbalances among its 19 members, including Germany, France, Italy, and Greece, Batstone-Carr said.

Under the euro, financially stable Germany backs debt issued by less wealthy southern states.

The more fragile economies of Italy, Spain, Greece, and others can now benefit from Germany`s debt rating, which is effectively a subsidy, the analyst noted.

According to the most recent data by ECB, i.e., European Central Bank, these subsidies are increasing, and the cross-border TARGET 2 eurozone transfers are experiencing enormous imbalances that are growing with every day that passes.
While Italy has a deficit of €670 billion and Spain has a deficit of €484 billion, Germany is by far the largest creditor, owing a staggering €1.23 trillion.

Government ‘turns back on nurses’? Thursday strike to go ahead

Government ‘turns back on nurses’? Thursday strike to go ahead

Nurses’ strike

The nurses’ union that called for the strikes said the government was being “belligerent” and wouldn’t negotiate pay, so the strikes will happen on Thursday.

The Negotiations

Earlier, No. 10 said that the health secretary, Steve Barclay, wouldn’t be willing to negotiate a new pay offer for nurses. However, it was thought that other parts of the nurses’ jobs could be up for discussion.

The Bundesbank would lose billions of euros in debt it has with other national central banks and the ECB, as well as an extra $400 billion in net losses due to current imbalances if the system collapsed. Moreover, the issues faced by heavy debt countries like Italy and Greece will worsen as the lengthy period of very low-interest rates ends.

Jessop said that high-debt nations like Italy and Greece are under increasing strain due to rising interest rates.

This circumstance is hazardous for the entire of Europe as it may cripple the continent’s economy as a whole.


  1. How much deficit does Italy have?
    Italy has a deficit of €670 billion.
  2. Who is Julian Jessop?
    Julian Jessop is an economics researcher at the Institute of Economic Affairs.
  3. Which country is the biggest creditor in Europe?
    Germany is the biggest creditor in Europe.

Disclaimer Statement: This content is authored by an external agency. The views expressed here are that of the respective authors/ entities and do not represent the views of Economic Times (ET). ET does not guarantee, vouch for or endorse any of its contents nor is responsible for them in any manner whatsoever. Please take all steps necessary to ascertain that any information and content provided is correct, updated, and verified. ET hereby disclaims any and all warranties, express or implied, relating to the report and any content therein.

Source link