Borrowing requirements of Italy and Spain over the next two years alone are more than EUR 1 trillion

Will Germany step in to save the euro?

Desmond Lachman 

There is now ample evidence that a German-led European policy of "too little too late" to prop up the European periphery cannot continue much further into the future as Spain and Italy come to need full-scale IMF-EU bailout packages. The overwhelming majority of the German electorate is opposed to bailing out the periphery, while 78 percent of the German electorate would like to see Greece exit the Euro.


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There is increased awareness in Germany that while Italy and Spain might be too big to fail if the Euro is to survive, those countries are also increasingly being perceived as being far too big for Germany to save. The sovereign borrowing requirements of those two countries over the next two years alone are more than EUR 1 trillion, which is around one third of Germany's GDP. 


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