Germany Rejects French Call to Use ECB as Lender

Merkel Rejects French Calls to Deploy ECB as Crisis Backstop on Euro Debt – Bloomberg.

As bonds yields of France and Spain rise, German chancellor Angela Merkel refused to deploy the ECB as a last alternative lender. Merkel is demanding supra-national controls on budgeting – essentially a closer union which involves some surrendering of sovereignty.

French bonds yield went up to 3.68% yesterday, a record for France’s euro history. Spanish bonds traded at double that %.