International bond markets are very skeptical over the Eurozone‘s future, noted German newspaper Die Welt, as almost 12% of investors expect that at least one country will leave the common currency area, implying Greece. This skepticism can be the reason why there are negative trends in European bond markets, the newspaper suggested. Skepticism is reflected at the Euro-Break-Up Index (EBI) that is published each month by rating firm Sentix. The index has skyrocketed to 53% in October alone. This is the index’s largest increase since March 2013, when there was a threat that Cyprus would leave the Eurozone, the German newspaper noted. Ever since, the index had never exceeded 8%. According to the newspaper, Greece remains the constant candidate to be the next to exit the Eurozone, while it further added Cyprus due to its proximity to Russia. Spreads of government bonds in indebted countries have went up, Die Welt noted, referring to Greek and Italian government bonds. However, what the newspaper reported as the most ‘striking’ news is that, according to European Central Bank’s official data, more than 17 billion euros have been taken off the Eurozone market in fear that the crisis will lead to further fluctuations in financial markets. Die Welt’s article came just after a recent interview of Greek Reform Minister Kyriakos Mitsotakis on Bloomberg, who suggested that the dilemma of whether Greece should remain in the Eurozone or return to its own currency, the Drachma, will be posed again if the country is driven to early general elections along with the upcoming Presidential election in March 2015.
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