Because foreigners hold a substantial share of the currency, a portfolio shift away from the currency, for example, can lead to large capital outflows and/or large declines in the exchange rate.
To “avert the danger”3] an extensive rescue package was put together, comprising up to € billion in government guarantees for financial institutions. Ten years on from this Herculean effort, many citizens are quite rightly asking how much it cost to bail out the banks. Federal Finance Minister Olaf Scholz recently put the bill at around € billion for central and state government.