Over last few months the risk of Euro breakup has been one of the hot topics of discussion. Multiple organizations across the globe joining hands to respond to the crisis have so far not been very successful in jump-starting the Euro economy. The markets have been responding continuously faster than all these efforts together.
The current crisis has affected all the major economies in the area, while Germany still is the linchpin of the euro economy and showing signs of optimism. Some of the key economic indicators shown below confirm the strengths of the German economy.
Different approaches are being discussed including, necessary measures for containment of the crisis, new framework for enforcement of fiscal discipline, separate funding paths from organizations like ECB, IMF and possibly issue of Euro bonds by central banks. All these efforts are being planned to contain the crisis prevent the Euro from disintegration.
The main question is how does it affect Germany? Aren't some of the measures going to make it tougher for Germany - tighter fiscal norms, higher rates for lending and money more.
Shouldn't Germany be the one considering breaking out of the Euro!......