Europe's Risk of Economic and Political Peril

The video tutorial discusses bond spreads in Europe, focusing on the Spanish-German and Italian-German spreads. It examines recent trends and the impact of political events on financial markets. The European Central Bank's role in influencing these spreads through quantitative easing is highlighted. The tutorial also addresses the challenges posed by diverging economic factors within Europe, such as varying growth patterns and working life durations, and the implications for the euro area's cohesiveness.

What has been the trend of the Spanish German spread over the past month?

How does the five-year chart of bond spreads differ from the six-month chart?

What role has the ECB played in managing bond spreads in Europe?

What are some of the political risks that investors are concerned about in relation to bond spreads?

In what ways do structural issues affect the cohesiveness of the European project?