Why Germany is so reluctant to stump up for the euro?

1. A currency is backup by the country’s credit and it is a liability of the of central bank. If the ECB (European Central Bank) prints the Euro and purchase the Italy’s bond, it equals to the German uses her own credit to borrow money and give it to the Italian to spend. Of course German will be very reluctant to do so. (Why ECB prints money equals to German prints money? It is because German is the only country which has credit in the Euro Zone.)

2. German suffered a hyper inflation in 1931 and they don’t want to suffer it again. Hence, they have been refusing print money since the establishment of the Euro zone.