“European Central Bank to create new tool to address fragmentation risk and temper bond rout”
June 15, 2022
“The European Central Bank announced Wednesday that it plans to create a new tool to tackle the risk of euro zone fragmentation, in a move designed to assuage fears of a fresh debt crisis.
The decision comes after the central bank surprised market participants with an emergency meeting to address higher borrowing costs for many European governments….”
Europe has a debt crisis. If I have to guess there’s not much they can do to stop an euro breakup.
“What is the European Debt Crisis?”
“The European debt crisis is the shorthand term for Europe’s struggle to pay the debts it has built up in recent decades. Five of the region’s countries—Greece, Ireland, Italy, Portugal, and Spain—have, to varying degrees, failed to generate enough economic growth to make their ability to pay back bondholders the guarantee it was intended to be.
Although these five were seen as being the countries in immediate danger of a possible default at the peak of the crisis in 2010-2011, the crisis has far-reaching consequences that extend beyond their borders to the world as a whole. In October 2011, the head of the Bank of England, Sir Mervyn King, referred to it as “the most serious financial crisis at least since the 1930s, if not ever.”…”
https://www.thebalance.com/what-is-the-european-debt-crisis-416918