BERLIN (MNI) – The German Finance Ministry sees dramatic
consequences for the domestic economy in the case of a Eurozone breakup,
German weekly Der Spiegel reported over the weekend, citing ministry
sources.
According to the magazine, the ministry foresees a GDP contraction
of 10% in the first year after a national currency was re-introduced in
Germany. Unemployment would soar to above 5 million.
“Compared to such scenarios, an ever-so expensive rescue [of the
euro] seems to be the lesser evil,” Der Spiegel cited a ministry
official as saying.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: M$X$$$,MGX$$$,M$$CR$,M$G$$$,MT$$$$]
