Through the years of low Interest rates, Germany has saved a lot of money. Since the outbreak of the financial crisis in 2008, a total of 368 billion euros came together, reported the “Handelsblatt”, citing the calculations of the Bundesbank. That’s the equivalent of more than ten percent of the gross domestic product.
in the past year Alone, the interest savings from the Federal government, länder, municipalities and social security funds would be 55 billion euros, the report says.
The Euro zone as a whole have even saved up to 1.42 trillion euros in interest. The biggest profiteer to Germany was, therefore, France, with a Savings of 350 billion euros, followed by Italy with 262 billion euros.
The Bundesbank has been compared to the respective level of interest rates in the Euro area countries from 2007, the year before the financial crisis, with the respective level in the years up to 2018. The German state had to offer in the year 2007 investors an average return of 4.2 percent for fresh money, the interest rate level continuously since at least 1.5 percent in 2018.
Because of this interest rate decline, the state had to spend less money for the debt service. The effect would be even stronger if the Federal government and the country running-there will be no Surplus, but would be at fault.
The States of the Eurozone should not weigh yourself yet. Economists warn that the debt of the Euro countries in the event of an interest rate rise will quickly rise again.