Business · Economy · 2 days ago
Bundesbank official says risks of European debt crisis have risen
Michael Theurer, a board member of Germany’s central bank, says the risk of a European debt crisis has risen significantly.
He said there is no systemic crisis at present, but political and budget uncertainty is affecting government bond markets.
Turmoil in France has spread to other highly indebted eurozone countries.
France has proposed measures worth 43 billion euros to reduce its deficit, while Italy has cut planned defense spending to do the same.
Theurer says it is too early for the European Central Bank to intervene because he sees no sign of an unsustainable market trend.
He supports calls by the International Monetary Fund for governments to tackle high debt and says they need medium-term plans that review spending and focus on investments that support growth.
He also says Germany is in a better budget position than many countries, but should still work to consolidate its finances.
Bundesbank executive Michael Theurer says risks of a European sovereign debt crisis have risen significantly.
He says there is no systemic sovereign debt crisis at present and that it is too early for European Central Bank intervention.
Political and fiscal uncertainty has affected government bond markets, including amid difficulties in France.
Theurer backs a medium-term strategy to review spending and focus on growth-enhancing investment.
He says Germany is in a better fiscal position than many other countries but should still work toward consolidating its budget.
- Who
- Michael Theurer, a Bundesbank executive, made the comments.
- What
- He said risks of a European debt crisis have risen significantly, while saying there is no current systemic crisis.
- When
- In an interview published on October 11, 2026.
- Where
- The comments concerned Europe, including France and other highly indebted eurozone countries.
- Why
- Fiscal and political uncertainty can affect government bond markets, and rising public debt has increased risks.
This story does not have two clearly opposing sides.
Political and economic difficulties in France led to a slump in its bond markets.
The market turbulence spread to other highly indebted eurozone countries.
Handelsblatt published Theurer’s comments on debt risks and possible ECB intervention.
- Risks
- Theurer said they had increased significantly
- Current crisis
- No systemic sovereign debt crisis, according to Theurer
- France budget measures
- €43 billion in measures to reduce the deficit
- Germany
- Theurer said its budget position was better than that of other countries in Europe and worldwide
What people are saying
There is currently no systemic sovereign debt crisis, but the risks have increased significantly.
At present, this is not the right time to talk about the ECB.
We see no signs of a fundamentally unsustainable development in the financial markets that could justify ECB intervention.