Now we saved Greece (?).
And what comes next?
Greece is forced to implement an extremely rigorous austerity programme. It will be hard to put into practice. Instead, the Greek economy will face a recession.
Friends of mine wonder if it might not be a good idea to re-organize the summer vacation they had originally planned to spend in Greek. This psychological effect will lend extra strength to the recession in Greece. The recession will more than make up for the success of the austerity programme. The domestic consequences and in particular the next elections in Greece will have quite a sobering effect on all of us.
So what will be the consequence for Germany? You can take it as a given that the Federal Republic of Germany will also have to pay higher interests. Firstly, because the demand for money will increase all the time. Secondly, because the credit-worthiness of Germany will not get any better, either.
It is quite easy to conclude what an increase of interest rates will mean for our households.
RMD
(Translated by EG)
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