The cepDefault-Index 2016 shows that for a large number of eurozone countries - Finland, Slovenia, Italy, Portugal, Cyprus and Greece - falling creditworthiness has become firmly established; a development which sooner or later will result in creditworthiness being lost altogether. Another danger is looming in that many eurozone economies are seeing a diminution of capital stock.
The current period of tranquillity on the government bonds market is thus misleading. It is not the result of a sustained recovery of the eurozone but of intervention by the European Central Bank, which is buying government bonds and thus having a calming effect on capital market players. Measures to permanently stabilise the eurozone therefore remain urgently necessary. Re-establishing the competitiveness of the economies in the problem countries must take priority in this regard.