Strong countries bear the weak countries

The European Central Bank (ECB) fills the gaps of the Southern European banks with an unlimited amount of loans. These loans are not cheap, let alone risk-free. The banks of the stronger, mostly northern European banks have to bear the heaviest burden. This is clearly visible in the loans that Germany and the Netherlands have outstanding with the ECB. The Dutch Central Bank has a claim of €142.5 billion on the ECB and Germany €698.6 billion. In contrast to the Netherlands and Germany, southern European banks such as those of Italy and Spain have accumulated a large debt with the ECB. These countries with debts to the ECB are well in the way of €1,000 billion.

Long gone are the days when we thought this wouldn't be such a problem. Although some still don't seem to dare to say this. We will then see artificial interventions from the ECB, among others, by lowering interest rates. But a rate cut is, of course, a drop in the ocean.

But what if the ECB actually starts to falter?

Source: fd.nl