Already, economists say the proposed eurobonds are a step too far, and would face headwinds between voters and politicians, especially in Germany. [Germany ETF Lower on Economic Worries]
“It’s as if there is a black cloud floating overhead but nothing has fallen on us,” said Markus Ponick, a teacher in Berlin. “The effects of this crisis are imperceptible here,” he said on The New York Times. Although the government has made cuts, they have been “cleverly chosen” to spare the public pain.
About 706,000 more Germans are employed than May of last year, according to a government measure. In fact, some estimates claim that there are more jobs available than qualified workers. The unemployment rate is at 7% in Germany, compared to about 9% in the U.S.
Time will tell what happens next for Germany, and since the economy is driven by exports, sudden consequences could pop up as the global economy slows down. Some economists think if there was a sudden drop in export activity, Germany would cut lending to any neighbors, and to the European Union at large. [Germany ETF: Will it Sink with the Country’s Status?]
iShares MSCI Germany
Tisha Guerrero contributed to this article.