Sunday Jun 24, 201204:27 PM GMT
Euro break-up could severely hit German economy: report
A self-made euro sign is attached to the tip of a christmas tree in front of the European Central Bank (ECB) in Frankfurt am Main, western Germany, on December 21, 2011.
A self-made euro sign is attached to the tip of a christmas tree in front of the European Central Bank (ECB) in Frankfurt am Main, western Germany, on December 21, 2011.
Sun Jun 24, 2012 4:8PM
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Germany's finance ministry fears the country could face a significant economic slump in the event of a eurozone break-up, a new report says.


The report published in advance copy of Spiegel news weekly on Sunday, suggest that German economy could contract up to 10 percent in the first year after the currency bloc break up, while unemployment could jump to more than five million people.

Germany’s total number of jobless stood at 2.855 million people in May.

"Measured against such scenarios, a rescue, as expensive as it may be, seems the lesser evil," Spiegel quoted an unidentified finance ministry official as saying.

Various eurozone’s member states have been struggling with deep economic stagnancy since the bloc’s financial crisis began roughly five years ago.

As the result, the member-states started implementing tough austerity measure in a bid to prevent facing double-dip recessions.

The austerity measures have only resulted in growing anger among the most affected people, sacked workers, low-income workers and students.

PG/JR
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