German central bank official warns: Risk of European debt crisis is rising sharply

1. Bundesbank Executive Board member Michael Teytel stated that the recent bond sell-off in Europe is a “clear warning signal”, reflecting investors’ concerns about governments’ ability to control debt. 2. Due to political and economic difficulties, France’s bond market has experienced a sharp plunge, and the turmoil has spread to other highly indebted countries in the eurozone. 3. Teytel and International Monetary Fund Managing Director Kristalina Georgieva have called on governments to urgently address major issues such as massive debt, suggesting that fiscal spending should focus on investment projects capable of driving growth.