Germany decided follow last week’s move by the Irish government and to issue a complete guarantee on all deposits. Germany is the first large EU country to do so. Spiegel online speculates that Germany’s decision could trigger a common EU guarantee for deposits to escape the beggar-thy neighbour policy. Full Story »
Posted by Peter Barnett
“With this mutually agreed solution, the institution will be stabilised and with it, Germany strengthened as a place to conduct finance in difficult times,”
There, the decision by the Irish and Greek governments to announce a blanket guarantee of all bank deposits was criticised for threatening to destabilise the economies of other European countries. The IMF says the Eurozone is facing its first “trial by ordeal”.
