Reported about 15 hours ago
Germany's new aggressive spending strategy is raising borrowing costs across Europe, heightening worries about fiscal stability in peripheral countries like Italy, Greece, Spain, and Portugal. As borrowing yields for these nations rise significantly, there's fear that Germany's approach could lead to a looser debt policy in Europe, complicating fiscal conditions for already highly indebted states. Analysts warn that this trend could elevate interest rates and increase financing burdens for vulnerable countries, while some investment managers suggest that defense spending may be an acceptable form of increased fiscal activity.
Source: YAHOO