A specter is haunting Europe: the threat of bond-market contagion.
We’re still some distance from a repeat of the 2010-2012 euro zone crisis. But there is a reason why the European Union has for a decade lurched from one emergency to another, and why every moment of stress — the 2022 loss of Russian gas, the Iran war, France’s overspending — threatens to push it over the brink.
Italy, for one, has managed to cut its fiscal deficit, but its macroeconomic recovery is very sensitive to rising yields on its sovereign debt — and hence its borrowing costs.
Italy is actually running a budget surplus and Giorgia Meloni’s government has stayed in power for nearly four years, giving the notoriously unstable republic an unprecedented spell of stability. But her government is still demanding that EU rules are bent to let it spend more.
Spain is even more disheartening. Prime Minister Pedro Sanchez has called fresh elections, although he’s trailing badly in the polls.
Politicians are unable to tell electorates the truth about the necessary sacrifices, and voters refuse to believe it even when they’re told.
Mihir Sharma Bloomberg 7 October 2026
Manifesto of the Communist Party
A spectre is haunting Europe — the spectre of communism. All the powers of old Europe have entered into a holy alliance to exorcise this spectre: Pope and Tsar, Metternich and Guizot, French Radicals and German police-spies.
https://www.marxists.org/archive/marx/works/1848/communist-manifesto/ch01.htm
Kommunistiska manifestet eller Det kommunistiska partiets manifest är en skrift utgiven den 21 februari 1848 i London av Karl Marx och Friedrich Engels.
https://sv.wikipedia.org/wiki/Kommunistiska_manifestet
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