Policy

Financial Health Isn't Guaranteed, Says German Central Bank

The country may have taken on just a tad more than it can handle

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Germany's central bank warned on Monday that the country could be stressed by the region's ongoing financial crisis, with signs of a slowdown accumulating in the euro zone's largest economy even as it is being relied on ever more to prop up its neighbors.

"Confidence in German public finances is a key anchor of stability in the current crisis but it cannot be taken for granted," the Bundesbank said in a monthly report that cautioned against what it called the potentially "unlimited" financial support being considered for troubled Italy and Spain.