Bundesbank sent a warning to the German government regarding the consequences the Grexit would have to Germany’s economy. The exit of Greece from the Eurozone is likely to create “holes” worth billions of euros in Wolfgang Schäuble’s budget, warned Bundesbank chief Jens Weidmann, speaking to the German Cabinet last Wednesday, according to Handesblatt. The business newspaper noted that Weidmann had warned that the costs of a Grexit would hit Bundesbank profits, which flow into the budget. The danger comes primarily from loss of government bonds held by the ECB, as the central bank of Germany has a 1/4 share in the profits and losses of the European Central Bank. According to the article, Bundesbank had gathered around 14.4 billion euros in order to cover the impact of the eurozone crisis, but at the moment they fear that the amount may not be enough.
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