Economically-Sound Germany at Risk if Greece Falters
Why can’t the Euro nations agree on a plan? In Germany, the situation is being compared to Titanic, one of the greatest disasters in history.
Since Euro Zone is like the Titanic heading for an iceberg called Greece, there’s plenty of concern on the first-class deck called Germany. If Greece goes down, it can take even Europe’s biggest economy with it.
“I believe Europe is right in a crossroads right now,” Gerhard Hofmann, director of the German Cooperative Bank Group, told CBS News.
“We are entering a critical zone now,” Hofmann said. “We cannot go on like this forever.”
To go on like this means to continue to use the wealth generated by Germany’s efficient industries to underwrite the debts of Europe’s foundering economies. When they’re small — like the economies of Ireland, Portugal or Greece — the sums are manageable. But, when they are big — like Spain — it’s different.
“The question is not how much has already been committed to the European project, but what will we have to do in the future?” Hoffman asks, adding that the factors of how much has to be given and at what rate also plays into the equation.