EU Government Debt Stabilizes, But If You Strip Out Germany Picture Is Bleaker

As the Greek government engages in its first public market bond sale in three years today, the debt environment around larger Europe appears steady at present. The recent S&P upgrade on Greek debt contingent, in part, on debt relief, has been greeted by a successful bond offering Tuesday amid the wider EU region being painted with an attractive brush. Looking at government funding trends for the EU’s “big five” government  shows muted yet diverging funding trends, a Moody’s report notes, but if you remove Germany the EU Debt To GDP looks a lot different.

[klarman]

In Germany, debt to GDP lower, not so in other major economies

While funding levels for government debt...