Juncker says German debt cause for concern

BERLIN | Wed Nov 16, 2011 11:48am EST

BERLIN (Reuters) - Eurogroup head Jean-Claude Juncker was quoted in a German newspaper on Wednesday saying that Germany's debt level is worrying and even higher than Spain's.

In an interview to appear in Thursday's General-Anzeiger newspaper in Bonn, Juncker also said it would be a disastrous scenario if Greece were to exit the euro zone.

"I consider the level of German debts to be a cause for concern," Juncker said.

"Germany has higher debts than Spain," he added. "The only thing is that here (in Germany) no one wants to know about that."

Juncker said Greece was on the right path. But if it were to leave the euro zone it would lead to a "disastrous scenario".

(Reporting By Erik Kirschbaum and Veronica Ek)
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Comments (1)
dingodoggie wrote:
I wonder if Germany will pull out of the Euro, would the German debts still be denominated in a then rapidly falling Euro? That would solve the debt crisis which as we all know was triggered by the unsustainable high debt level of Germany…

I think Mr. Juncker is just trying to spread some confusion here, trying to reduce the spread between German and south European bonds. Nice idea if it would work, like lighting a small fire to stop a firestorm. Unluckily, nobody in Germany is reading the General-Anzeiger.

Nov 16, 2011 4:34pm EST  --  Report as abuse
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