Could France’s debt troubles tip Italy into recession? - Euronews.com
Could France’s debt troubles tip Italy into recession? - Euronews.com
Source: Euronews.com
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DW NOTE
France's sovereign debt spread over Bunds hit 90 basis points in November — the widest since the eurozone crisis — because markets finally priced in a decade of deficit spending with no credible plan to stop. Italy's spread sits at 130. If French borrowing costs keep rising, the ECB faces a choice: let contagion destroy the periphery or restart bond-buying while inflation runs above target and oil sits at $108. Neither ends well for Italian growth.