The outcome of last week’s European summit threatens Germany’s financial stability, Handelsblatt reported, citing Hans-Werner Sinn, the president of the Munich- based Ifo research institute.

“The German state is being drawn ever deeper into the southern European crisis, while investors from all over the world, who have gambled and lost, can now get out of the vortex at the last minute,” Sinn was cited as saying.

The fiscal pact, which Germany had pushed for, won’t be taken seriously outside the country, Sinn said, according to Handelsblatt.

To contact the reporter on this story: Cornelius Rahn in Frankfurt at crahn2@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net