That prevented a meltdown of the financial system, which otherwise would have led to strongly deflationary pressure across the euro area. So Germany was also saved by the ECB? In Germany, one might say that it’s obvious that debtors have to pay back what they owe. But the lenders also bear a responsibility. They too should be careful.
On the upside, the current market movements may help reduce the build-up of asset valuations that could contribute to financial market imbalances. We can also be assured that recent market volatility notwithstanding, our economy’s growth remains firm, underpinned by strong macroeconomic fundamentals, broad-based economic growth, manageable inflation, strong external payments position, sufficient fiscal space, as well as a sound and stable banking system.