Analysts have been wowed by the dramatic decline in borrowing costs for core European countries—Germany, France, Belgium, the Netherlands, and Austria—at the same time as yields on Spanish and Italian bonds soar out of control.
But this is really terrible news for those hoping that European leaders will take quick action to resolve the sovereign debt and banking crises still ravaging the monetary union.
Instead of putting pressure on EU leaders to work together, this divergence in borrowing costs is pushing them apart. Watch our video on what’s happening.
Produced by Daniel Goodman
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