Yes, the Germans would lose about 40% of their ON PAPER net worth, but how much of that Euro debt is actually collectable. The Germans may just decide to write off that 40% of their net worth to insure it does not become a 60% write off down the line.
Germany is holding a losing poker hand. Throw in the cards now and lose 40% or double down on the come. Hard to tell because socialists are the most illogical group known to man and will never admit they were wrong.