The European Debt No Cause for Alarm Yet

The European sovereign debt crisis that erupted in 2010 raised the bond yields of the economies in greater debt, such as Portugal, Italy, Ireland, Greece and Spain (PIIGS), leaving the very existence of the euro zone in doubt.  Their financial markets have calmed down in the past three years or so, but the recent political instability in Italy has revived concerns about the European public debt.  Bond yields in Italy and the euro zone’s periphery economies have gone up as a result. Is the monetary union on the brink of a second sovereign debt crisis? What progress has been made since 2010?