Moody's assessment is derived mainly from short-term risks, while the longer-term outlook for stabilisation goes unmentioned. The euro area has launched a whole series of measures that will lead to the sustained stabilisation of the euro area.
The very sound state of Germany’s own economy and public finances remains unchanged.
Germany is likely to fulfil its medium-term fiscal policy objective already this year, and the Federal Ministry of Finance (BFM) expects to achieve a balanced general government budget from 2014 onwards. This will place government debt levels on a clear downward trend. Banking sector capitalisation in Germany has improved markedly. The outlook for economic growth in Germany also remains solid.
The IMF’s most recent Article IV consultation on Germany concludes that the German economy’s performance has been remarkable despite difficult surrounding circumstances. International financial markets also have strong confidence in Germany; this is reflected in Germany’s low debt financing costs.
"By pursuing sound economic and fiscal policies, Germany will maintain its safe haven status and will continue to exercise responsibly its role as stability anchor in the euro area. Together with our partners, we will do everything to resolve the European sovereign debt crisis as quickly as possible."
Press release
© Bundesfinanzministerium
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