Spain Debt Costs Seen Unjustified in Berlin Crisis Talks

Spanish borrowing costs surged after crisis talks in Berlin late yesterday produced a statement saying bond yields don’t reflect the strength of Spain’s economy.

“The current levels of interest rates on sovereign debt markets don’t correspond to the fundamentals of the Spanish economy,” German Finance Minister Wolfgang Schaeuble and Spanish Economy Minister Luis de Guindos said after their meeting in a joint decalaration that also praised Spain’s deficit-cutting efforts.