Chancellor Angela Merkelâ€™s government said Germany will remain Europeâ€™s haven during the financial crisis, pushing back against Moodyâ€™s Investors Serviceâ€™s decision to lower the outlook on the countryâ€™s top credit rating.
The risks in the euro zone are â€œnot newâ€ and Germany remains â€œin a very sound economic and financial situation,â€ the Finance Ministry said. In counterpoint to Moodyâ€™s, it cited the verdict of financial markets that have rewarded Germany with record low borrowing costs.
â€œGermany will, through solid economic and financial policy, defend its â€˜safe havenâ€™ status and continue to responsibly maintain its anchor role in the euro zone,â€ the Berlin-based ministry said in an e-mailed statement. â€œTogether with its partners, it will do everything to overcome the sovereign debt crisis as rapidly as possible.â€
Euro-area bonds fell today after Moodyâ€™s lowered the outlook to negative for the Aaa credit ratings of Germany, the Netherlands and Luxembourg. Moodyâ€™s cited â€œrising uncertaintyâ€ over Europeâ€™s debt crisis. It left Finland as the only country in the 17-nation euro region with a stable outlook for its top ranking.
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