Germans Should Be Afraid’ of Economic Collapse
Credit ratings agency Moody’s on Monday slashed its outlook for the creditworthiness of not only Germany, but also of the Netherlands and Luxembourg to “negative” from “stable.”
Though Moody’s maintained its triple-A ratings for all three countries, it said the increasingly uncertain outlook stemming from the European debt crisis was behind the changes.
The unsettling move followed controversy over comments made by German Economy Minister and Vice Chancellor Philipp Rösler, who on Sunday expressed his skepticism that Greek reforms would succeed. He also said a Greek exit from the euro zone has “long since lost its horrors.”
The bad news continued to pour in on Wednesday, with new figures out from the Munich-based Ifo Institute for Economic Research showing Germany’s business climate index dropped for the third time in a row in July, once again due to the European debt crisis.
Print 
PDF