Why the ECB Is Wary of Stepping Into France’s Bond Turmoil - Bloomberg.com
Why the ECB Is Wary of Stepping Into France’s Bond Turmoil - Bloomberg.com
Source: Bloomberg.com
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DW NOTE
The ECB's refusal to intervene in French bond spreads is a credibility test disguised as a technical dispute. If the central bank steps in every time a member state's fiscal recklessness meets market discipline, the eurozone becomes a permanent bailout machine with German savers funding French deficits. France's debt-to-GDP stands north of 110% — the bond market isn't panicking, it's pricing.