• bacondragonoverlord@feddit.org
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    4 months ago

    Sorry I somehow forgot the first part of your question. If I understand correctly they threaten to sell off the debt they hold which will increase the supply of that debt, while at the same time decrease the amount of potential buyers.

    To still be able to sell their debt the EU countries now have to (as any country needs a constant influx of money) make the new debt more attractive by offering better interest etc