Why The French And German Governments Disagree

Merkel has reportedly denied it, but there have been numerous reports that France and Germany still are not on the same page regarding the path forward in Europe.

How come?

Just look at that spread between French and German 10-year debt. It’s widening once again today, and at one point hit 1.2% intraday.

So long as the market views the two countries so differently, well, the two countries will probably have a different stance on things.

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