Germany and France are poised to take the first step toward a European investment program, as the euro area’s two biggest economies seek to resolve differences and spur growth without resorting to stimulus spending, government officials said.
Purchases of government bonds are clearly more complicated to implement in Europe than the US. Choosing which bonds to buy in Europe, since each country issues them separately with different risks, is not easy.
Is it a) by cutting the central bank’s two main borrowing costs, b) by announcing the onset of asset backed bond purchases that might help that market reinvent itself, or is it c) by slamming the euro currency?
The euro rose from its lowest in almost a year after Germany’s finance minister said comments by European Central Bank President Mario Draghi advocating support for euro-zone fiscal policy were “over-interpreted.”