Germany: ‘The interest trap’

5 April 2013 – Presseurop Handelsblatt

Cover

The business daily publishes a feature on how the financial crisis threatens the “German myth” of the small saver.

“Germans are saving to become poorer,” remarks the newspaper, which explains that “central bankers and politicians are combating the crisis with a policy of cheap money. States and banks have benefited, but the German saver has to foot the bill.”

Contrary to the "German myth" that their savings will protect them, individuals have no option but to watch their deposits lose value. Since the Cyprus crisis, more than a third of Germans have lost confidence in their bank accounts, with 59 per cent believing Angela Merkel will not be able to protect their savings.

Factual or translation error? Tell us.