Greece has finally completed a bailout agreement after marathon talks – at the same time as it’s been revealed Germany could benefit “substantially” from the eurozone debt crisis.
Athens officials emerged from a 23-hour discussion this morning to declare terms had been agreed with just “minor details” still to be confirmed, as the country pulls away from bankruptcy.
The bailout, expected to be worth around £60billion, has been secured in time to meet a £2.25billion debt repayment to the European Central Bank next week.
But it’s been revealed the big winner from the crisis is Germany.
Chancellor Angela Merkel’s government will save around £70bn thanks to lower interest payments on funds borrowed, because at the same time investors have sought safety in German bonds and therefore paid a higher rate.
The Independent Leibniz Institute of Economic Research found Germany had benefited from improved rates with the report saying: “A significant part of this reduction is directly attributable to the Greek crisis.”
The £70bn saving is in figures since 2010 – soon after the Greek debt saga began – and accounts for three per cent of Germany’s GDP.
It is also more than the £64bn Germany has contributed to Greece’s bailout.
That means it would benefit even if Greece completely defaults on the loan.
The organisation said: “Even if Greece indeed does not repay any of its loans, Germany comes out ahead. If Greece does pay or pays at least in part, the savings are substantial.”
Germany’s profit will increase ill-feeling over its role in the crisis as it has constantly pushed for tough conditions attached to a rescue package, often derailing talks.
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