Germany is on the verge of a recession after leading economists cut its forecast for gross domestic product (GDP) for the third financial quarter. Last week, the World Economic Institute (IFW) predicted that Germany's GDP could contract by an additional 0.3% between July and September – its worst figure in six years. The deceleration occurs after the IThe largest economy in the economy fell in the second quarter.
GDP fell 0.1% in the three months from April to June.
An economic recession is triggered when GDP falls for two consecutive quarters or six months.
The IFW said: "These weak numbers were last seen in 2013 after the euro debt crisis."
Fearing another financial crisis, Greece's top economist and former Finance Minister Yanis Varoufakis brilliantly explained the roots of the 2009 crash in a setback speech.
During a debate at the Oxford Union in 2017, Mr. Varoufakis attacked against Germany, which he claims irresponsibly lent large amounts of money to the Greeks.
He said: “The total net export surplus of German industry between 2000 and 2008 was 2.3 trillion.
Yanis Varoufakis brilliantly explained the roots of the euro crisis (Image: GETTY)
A chart displays the closing numbers on the New York Stock Exchange (NYSE) on August 14 (Image: GETTY)
"It is not bad.
“There was a lake of euros piling up on the banks of Frankfurt, and a banker's worst nightmare is having money he's not lending.
“So what did they end up doing?
"They lent it to the Greeks and the Irish."
Varoufakis said Greece did not bring "fantastic cars" to the eurozone, as GermanyBut it had another amazing asset: low debt.
He explained: “92% of the houses were owned by the residents.
"We had no mortgages, we had no credit cards – we had a very low level of debt.
“I know it sounds strange, but the biggest asset Greece brought to the eurozone was a low level of debt.
Growth rates in individual euro area countries (Image: EXPRESS.CO.UK)
Principal economist and former Greek minister Yanis Varoufakis (Image: GETTY)
And warranty. We had low incomes, we were unproductive, slightly corrupt.
“All these things, but we own our homes.
“Do you know what we were? We were the apple in the eyes of the German bankers
"A banker looks at you, you owe no money to anyone, owns your own home and is thirsty for washing machines, German cars, imports.
"You're a wet dream for a German banker."
The chief economist described how in the first two years everything was "fantastic," for both surplus and debt countries.
However, Varoufakis argued that it was just a fantasy that exploded on Wall Street in 2009.
He continued: "For every irresponsible borrower, there is an irresponsible lender.
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George Soros, Hungarian currency speculator (Image: GETTY)
"But this is the structure of the monetary union, which lacks a federal treasury."
Varoufakis is not the only financial expert who attributed the euro crisis to Angela Merkel's Germany.
Hungarian-born currency speculator George Soros said in an editorial for the Financial Times in 2014 that the German chancellor intentionally urged European countries to save their own institutions rather than create some I entity to deal with the crisis.
He wrote: "Angela merkelThe German Chancellor insisted that there should be no joint EU guarantee: each country would have to look after its own institutions.
Former Chancellor Angela Merkel (Image: GETTY)
"This was the root cause of the current euro crisis.
"The financial crisis forced sovereign states to replace their own credit with collapsed credit, and in Europe each state had to do so on its own, questioning the creditworthiness of European government bonds."
Soros also suggested that Merkel might not see how disastrous it would be for the eurozone as a whole, because Germany is her homeland.
He explained: "As the largest creditor, Germany could dictate punitive terms of assistance, which led debtors to insolvency.
"Meanwhile, Germany benefited from the euro crisis, which depressed the exchange rate and further increased its competitiveness. "