A key sign: Prices for government bonds of other heavily
indebted eurozone countries — such as Spain and Italy — are not suffering in sync with Greek bonds, as they did before.
Not exact matches
But Italy's current debt load is quite high, and the
country's leaders surely won't relish the opportunity of going into the next recession as the weakest and most
indebted in the
eurozone.
On 7/14, the Central Bank of Italy reported that Italian public debt has risen upwards of 2.2 trillion euros in May, a new record for the
Eurozone's second-most
indebted country after Greece.
To back up that point, Tsipras said a French businessman accompanying French President Emmanuel Macron on his 2 - day visit to Greece this week told him that the once prevalent narrative of Grexit — the likelihood of the deeply -
indebted country leaving the 19 - nation
eurozone — has now become Grinvestment.
For example, it could buy
eurozone bonds in relation to the outstanding debt of each
country — a method that would favor the most
indebted countries like Italy and Greece.
It could cause the euro to rise in value against other currencies, potentially hurting exporters, and it could bring higher returns on savings as well as stiffer borrowing costs for
indebted governments in the 19 -
country eurozone.