France’s Bond Turmoil Raises the Specter of Contagion in Europe - Bloomberg.com
France’s Bond Turmoil Raises the Specter of Contagion in Europe - Bloomberg.com
Source: Bloomberg.com
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DW NOTE
France's public debt stands at 112% of GDP while the government runs a 6% deficit — numbers that would have triggered a sovereign crisis in 2011. The difference this time is that Italy is at 137%, Spain hovers near 110%, and the ECB has spent a decade teaching markets that eurozone bond spreads are a policy variable, not a price. When you substitute central bank purchases for fiscal discipline across an entire currency bloc, contagion isn't a specter — it's the inevitable repricing of who actually stands behind the debt.