Confidence in Germany’s finances is flagging after Wednesday’s disappointing sovereign bond auction. The situation complicates Berlin’s conflict with the European Commission over its hope to introduce euro bonds as a solution to the currency crisis. German commentators are critical of both sides on Thursday.
Those who believe the economic situation in the euro zone can only improve are, it seems, sadly mistaken. On the same day that conflict between Berlin and the European Commission over so-called euro bonds flared up, an auction of German ten-year bonds failed, with investors purchasing barely half of the €6 billion offering. Could Germany, supposedly the only safe haven in the euro zone, be the next country to slide into financial trouble?