Sunday, 24 June 2012 16:44
BERLIN: Germany's finance ministry fears the country could face a significant economic slump and a spike in unemployment in the event of the eurozone breaking up, according to Spiegel news weekly.
According to a ministry study, the first year after the euro's collapse could see the German economy contracting around up to 10 percent, the German magazine said in an advance copy of Monday's edition.
Unemployment would climb to more than five million people under the scenario, it added. In May, the total number of jobless stood at 2.855 million people after falling to 6.7 percent from April.
"Measured against such scenarios, a rescue, as expensive as it may be, seems the lesser evil," Spiegel quoted an unidentified finance ministry official as saying.
Copyright AFP (Agence France-Presse), 2012