Economics, 3rd Edition

Interest Rate on Ten-year Government Debt in Selected European Countries

The figure shows the interest rate on ten-year government debt for a selection of European countries in March 2012 and March 

2013. The cost of borrowing is generally lower for all countries in March 2013 but there is a considerable variation in the cost 

of borrowing. The cost tends to be much lower for those countries with stronger economies and thus less likely to default.

UK

Switzerland

Sweden

Spain

Portugal

Netherlands

Italy

Ireland

Iceland

Greece

Germany

France

Denmark

Belgium

0

5

10

15

20

Interest rate %

Mar–12

Mar–13

I t

t R t

T

FIGURE 36.5

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CHAPTER 36  COMMON CURRENCY AREAS AND EUROPEAN MONETARY UNION  775