German Businessmen Are Already Freaking Out About Possible Hyperinflation

Hyperinflation, Europe

Photo: Magyar Nemzeti Múzeum Történeti Fényképtára, Budapest

BERLIN (AP) — An influential German business organisation is warning that proposals to allow the European Central Bank to buy up bonds of struggling euro countries could seriously damage the single currency.The ZDH, which represents some 5 million skilled craftsmen, said Friday the “stabilisation of the monetary union is no end, in and of itself, to be pursued with no thought to the associated economic, social and societal costs.”

It warns that a big bond-purchase program by the ECB could “pose a massive threat to the functioning of the monetary union.”

Markets have rallied on hopes the ECB will buy bonds of countries like Spain and Italy, to keep a lid on their borrowing costs.

The ZDH also says national parliaments need to retain control of deciding how taxpayer money is spent.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.