Bailout too much for Germany
June 7, 2012, 2:18 p.m. EDT
Germany and France can’t afford euro-zone bailout
Commentary: Europe’s soundest economies have limited ability to lead
By Satyajit Das
Marketwatch.com
SYDNEY (MarketWatch) — The standard narrative states that Germany does not want to bail out troubled peripheral nations within the euro zone. The reality is that the more highly rated and larger euro zone members, Germany and France, may not have the necessary financial resources for the task.
German Gross Domestic Product is euro 2.5 trillion and its debt levels are around 80% of GDP. French GDP is euro 2.1 trillion and its debt levels are around 90% of GDP. Germany and France’s greatest vulnerability is the large financial exposures arising from the current European debt crisis. Their exposures to the troubled peripheral economies are large.
More: http://www.marketwatch.com/story/germany-and-france-cant-afford-euro-zone-bailout-2012-06-07
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