Germany will help the broke countries of the euro zone South: Spain, Portugal and Greece. Finance Minister Wolfgang Schaeuble plans that German state Development Bank KfW will give loans of low interest rates to small and medium enterprises in Portugal and Spain, and most likely also in Greece.
According to weekly DER SPIEGEL,
Many companies in the crisis countries of eurozone can hardly acquire loans despite the low interest rate policy of the European Central Bank. Now, Germany wants to help: The Federal Ministry of Finance plans that the state development bank KfW prepares a loan program for small and medium enterprises in Portugal and Spain.
KfW will award the loans to sister institutions in the euro-crisis countries, which in turn would have sufficient capital for investment in the domestic economy. In this way, companies would benefit from low interest rates in Southern Europe.
The German government is yet to discuss the details for the KfW loan program. German media speak of a total loans amount of a one-digit-billion euro.
A spokesman for Finance Minister Wolfgang Schaeuble said that Germany would help both countries [Spain, Portugal] with various initiatives.
Extend loan aid also to Greece
SPIEGEL refers to a letter of Schaeuble to Economy Minister Philipp Roesler. In his letter Schaeuble speaks about extending the low-interest rates loans program also to Greece. “I mean, in addition we should also offer bilateral aid,” DER SPIEGEL quotes from Schaeuble’s letter. (via t-online.de)
I cannot say with certainty what caused Schaueble’s U-turn and now he tries to mutate Germany from notorious economy-tormentor to economy-patron, supporter and savior.
Wolfgang Schaeuble, the enthusiastic austerity-groupie, maybe went to confess his sins and saw the light…
Did the priest in his neighborhood advice him, that a good Catholic has to support all faithful without exception and not only fellow Catholics? Impossible. Schaeuble is baptized Protestant. Most likely the pastor advised Shaeuble, that his noble deed aimed only at Spain and Portugal would create a bad image for the Christian Democratic Union less than six months ahead the elections…
nevertheless, German opposition parties Socialdemocrats (SPD) and the Greens oppose Schaeuble’s plans claiming “it is too late” and that “plans for real economic growth are due”. I think, they did not elaborate.