Merkel: Germany 'will maintain safe haven status'

Chancellor for Germany Angela Merkel has stated her government will maintain the country's status as a safe haven as it works with its eurozone partners to resolve the ongoing sovereign debt crisis.

A statement from the German Finance Ministry published today (July 24th), has insisted the nation is in a sound economic and fiscal position, while it has been rewarded for its stability with record low borrowing costs.

"By means of its solid economic and financial policy, Germany will retain its safe haven status and continue play its role as the anchor in the eurozone responsibly," it noted.

These comments follow news that ratings agency Moody's has put Germany's outlook onto negative, which means it may lose its AAA rating. Luxembourg and the Netherlands are also at risk of a downgrade.

At 16:15 BST, the euro was lower versus all its major trading partners, slipping 0.2 per cent in trading with the dollar to $1.20 per €1 and depreciating by 0.3 per cent against the pound buying £0.77.