GERMANY’S STATUS as a save haven for investors in the midst of the eurozone deb crisis appears to be wilting somewhat.

The cost to the German government of taking out a 10-year loan has shot up in recent days – and has taken a serious spike since yesterday.

The government would have been asked to pay 1.127 per cent annual interest on a 10-year loan if it was borrowing on June 1, the day the result of Ireland’s Fiscal Compact referendum was announced.

Since then, however, the costs have risen steadily – and this morning stood at over 1.5 per cent for the first time in around a month.

The costs remain relatively low, with Germany still largely being seen as robust enough to withstand the shock of a collapse in the eurozone.

Indeed, the costs have reached a historic low on June 1, finding a level not seen before – as investors opted to take a modest, below-inflation return for their investments on the premise that they would, at least, get their investment back at the end.

This morning new figures in Germany showed that inflation there had fallen to 1.9 per cent in the twelve months to May – the first time since December 2010 that it’s been below the 2 per cent level considered ‘ideal’ by Germany and the ECB.

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