Impact of the euro crisis on the German economy

Opinion is fiercely divided over what impact the European debt crisis will have on Germany. The manifold aspects surrounding the issue add to the confusion. Many argue that Germany's European partners are placing too much of a burden on the country's shoulders and that, in the end, German taxpayers will be left to foot the bill anyway.

Then, there are those who believe that the German government is actually benefiting from the euro crisis. Another issue is the economy: a growing chorus of voices claims that the euro crisis is dragging Germany to the brink of a recession.

In this Working Paper, we aim to help bring the debate back to the facts by structuring the various different aspects and assessing them individually. We do not want to speculate as to the possible impact of the disintegration of monetary union, but rather plan to discuss the impetus and effects that the debt crisis has already had on the German economy.

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