German finance ministry fears catastrophic consequences for Germany should the euro falter

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German finance ministry fears catastrophic consequences for Germany should the euro falter

From Eurointelligence this morning, on a leaked report from the German finance Ministry as reported in Der Spiegel …

According to the German finance ministry the break-up of the eurozone would have catastrophic consequences for the German economy, Der Spiegel reports. The potential drop in growth could be up to 10% in the first year after the reintroduction of the German mark, a study done by the ministry shows. Also unemployment could rise back to record levels above 5m. The ministry has kept the results of its study secret so far because of fears that they will contribute to a rise of the costs of the Euro rescue. “Compared with those scenarios (in the study) even the most expensive rescue appears to be the lesser evil”, the magazine quotes a ministry official.

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Donagh is the editor of Irish Left Review. Contact Donagh through email: dublinopinionAtgmail.com