Der Spiegel reports: “So far, Germany hasn’t had to spend a single euro from the federal budget on Greece.” It’s a line one has heard dozens of times on German talk shows in recent years. Soon, though, the claim may no longer hold true. A Greek insolvency is now within the realm of possibility and if the country does go bust, it could directly burden the German federal budget.

But how many billions of euros in German money are actually at stake? It may seem like a simple question, but there are no easy answers, because Germany’s actual liability for Greek debt depends on a number of factors. [Continue reading…]