In reality, Germany refuses to let the euro play an international reserve currency role

A country that issues an international reserve currency must provide safe assets (generally public debt) in its currency to the rest of the world. However, Germany is doing the opposite: it is destroying its public debt with its budget surpluses and , moreover, whatever remains of its public debt is not available for non-residents because of Germany ’s private sector savings surplus. What are the consequences of Germany’s refusal, given its economic choice, to play the game of a country issuing an international reserve currency? As there is growing excess demand for German public debt, Germany's long-term interest rates are becoming zero or negative; Investors are switching into the other euro - zone public debt that is presumed to be risk-free, i.e. French government bonds; France can therefore increase its public and external debt without fearing a rise in its interest rates.