Spanish debt issuance is 6% of GDP. It's one thing to run big deficits in bad shocks like COVID - Spain could only do that because the ECB bought all its issuance - but it's another to run big deficits in good times. The ECB is the key enabler of Spain's reckless fiscal policy...
If your debt is sustainable, markets should be willing to fund your deficits at low interest rates in goods states of the world and in bad. Neither Spain (lhs) nor Italy (rhs) meet that test. Both need the ECB (blue) to absorb ALL their debt issuance in bad states of the world...
Italia:
El resto del mundo:
Abrazos,
PD: Nos tenemos que mirar todos los días, sobre todo en materia de Soberbia…
Que la soberbia no te impida abrirte a conocer nuevas cosas sobre Dios…
