[...]In her speech at the Davos World Economic Forum, Chancellor Angela Merkel warned that Germany might be overwhelmed by its efforts to bail out the Eurozone. Germany must not make promises that in the end can't be kept, she said. It doesn't make sense to demand a doubling or tripling of Germany's contribution. "How long will that remain credible?" she asked.
The government's reluctance has made Germany the favorite punching bag of the economic world, and most certainly of George Soros, who mused in Davos: "It's Germany that dictates European policy ... the trouble is that the austerity that Germany wants to impose will push Europe into a deflationary debt spiral."
But every few months, the amounts to bail out Greece are rising. And it's not just Greece. Other countries are on life support as well. So the bailout mechanisms have become a bewildering and expanding array of direct and indirect contributions, commitments, and guarantees that, theoretically, all 17 member states of the Eurozone would share proportionately. But five of them—Portugal, Ireland, Italy, Greece, and Spain—are in trouble. So the remaining 12 have to shoulder their burden, and some of them are teetering.
Now all eyes are on Germany. CESIfo, the Munich-based economic research group that publishes the closely-followed Ifo Business Climate index, has put a pencil to Germany's maximum exposure over time. The report takes into account Germany 27.1% share of the ECB and 6% voting rights of the IMF. Total exposure: 635 billion ($831 billion), a whopping 27% of Germany's GDP. And it doesn't even include any bailouts within Germany.
Original Page: http://www.businessinsider.com/germany-frets-as-bailouts-and-risks-balloon-2012-1
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