Greek Deal Impacts German Finances

The relationship between the economies of Greece and Germany is growing closer with every new bailout package. Photograph: Olivier Holmey

The relationship between the economies of Greece and Germany is growing closer with every new bailout package. Photograph: Olivier Holmey

Following an overwhelming victory for German Chancellor Angela Merkel’s latest Greek bailout package in the Bundestag on November 30, the media here have been pressing for answers on its implications for the German revenue, budget, and ultimately broader economy. In an attempt to reassure the German public, a year away from a general election, Finance Minister Wolfgang Schäuble has declared that the cost of the aid deal will not be covered by the German taxpayer. Yet he has also confirmed fears that Berlin will suffer a €730 million “reduction of revenues”.

The Spiegel news magazine was quick to flesh out the significance of this most recent development: the new aid package marks the first time the debt crisis in Greece will directly impact the German budget.

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