National debt: Rising interest rates fan fears of a sovereign debt crisis
Interest rates for government debt are rising to their highest level in 15 years. This is putting pressure on highly indebted eurozone countries. And Germany is also now feeling the impact of this trend reversal.
German Chancellor Friedrich Merz has sparked concerns about the country's creditworthiness, stating that if Germany's stability is compromised, he would instruct the Finance Minister to take action. His comments have come under scrutiny as the country's debt and rising bond yields cause worry among government members and economists.
The yield on 10-year German government bonds reached 3.27% on Wednesday, a 15-year high. Economists, including Gabriel Felbermayr, are warning of a potential global state debt crisis, with France's 10-year bond yield also surging to 4.13%, its highest since the 2008 financial crisis.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
