European CEOs Move Cash to Germany
Grupo Gowex GOW, a Spanish provider of Wi-Fi wireless services, is moving funds to Germany because it expects Spain to exit the euro. German machinery maker GEA Group AG is setting maximum amounts held at any one bank.
“I don’t trust Spain will remain in the euro zone,” said Jenaro Garcia, founder and chief executive officer of Madrid– based Grupo Gowex, which provides Wi-Fi access in 15 countries. “We moved our cash and deposits to Germany because Spain will come back to the peseta.”
European companies spent billions preparing for the euro when it was introduced in 2000 by 11 countries. Contingency planning for an unraveling of the currency involves cutting investment, moving money to Germany, transferring headquarters to northern Europe from southern, and even going out of business, according to interviews with more than 20 executives.
The Bundesbank, Germany’s central bank, registered capital inflows of 11.3 billion euros $15 billion from non-banks in September, according to the breakdown of its current account published Nov. 9. That helped transform a deficit of 47.3 billion euros in Germany’s balance of other capital flows in August to a surplus of 700 million euros in September.
Strange Random Currency Quote:
“The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.” – Ernest Hemingway
- European CEOs Move Cash to Germany to Guard Against Euro Breakup (businessweek.com)
- The Entire European Summit In One Genius Venn Diagram (businessinsider.com)
- Irish Euros or German Euros? (brianluff.wordpress.com)
- Eurozone crisis: European voices (bbc.co.uk)
- ECB takes centre stage before summit to save euro (france24.com)
- Forget Europe… Germany’s Got Its Own Problems to Deal With (zerohedge.com)
- ECB Shows the Bazooka, Targeting Liquidity (news.firedoglake.com)
- Market Spooked by Banks Taking Tons of ECB Cash (blogs.wsj.com)
- While Europe Slides, Germany Plays Hardball (forbes.com)
- Editorial: The Wrong Fix (nytimes.com)
Posted on December 9, 2011, in Article and tagged Chief executive officer, Ernest Hemingway, European Central Bank, European Union, GEA Group, Germany, Madrid, Money, September, Spain. Bookmark the permalink. Leave a comment.