European Squabbling on Crisis Tests Rally as Spain Bonds Decline
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Squabbling among European governments over the next steps needed to overcome the sovereign debt crisis raised the specter of more turmoil, puncturing a rally that had sent Spanish 10-year bond yields to their lowest in five months.
A Sept. 14 European Union finance ministers meeting in the Cypriot capital of Nicosia deadlocked over the timetable for a more unified EU banking sector, with a German-led coalition pushing back against a more ambitious plan sought by France, Spain and Italy. The ministers also bickered over the terms of bailout requests and the role of the European Central Bank.