What does "these widening spreads" refer to in the following interview?

Q. The rise in interest rates has led to a rise in risk premiums in southern Europe. Are fears that Europe will see a repeat of the 2010 European debt crisis justified?

A. I don’t see that. The actual burden of debt service in Spain is not high. Spain should not be distrusted by the markets. Maybe the markets are fearing another liquidity crisis. The last one, Mario Draghi ended with three words: ‘whatever it takes.’ Maybe they’re afraid that this time the ECB won’t say those words again. But in a peculiar way, these widening spreads are more of a political crisis than they are about economics. They’re a question about the willingness of Europe to take the necessary steps to maintain the stability of the euro.

Question

What does "these widening spreads" refer to in the following interview?

Q. The rise in interest rates has led to a rise in risk premiums in southern Europe. Are fears that Europe will see a repeat of the 2010 European debt crisis justified?

A. I don’t see that. The actual burden of debt service in Spain is not high. Spain should not be distrusted by the markets. Maybe the markets are fearing another liquidity crisis. The last one, Mario Draghi ended with three words: ‘whatever it takes.’ Maybe they’re afraid that this time the ECB won’t say those words again. But in a peculiar way, these widening spreads are more of a political crisis than they are about economics. They’re a question about the willingness of Europe to take the necessary steps to maintain the stability of the euro.

tesasilvestre · Answer

In the context of interest rates, a spread is the difference between the interest rate that a bank charges borrowers and the interest rate the bank pays depositors.  Widening spreads means that the differences between the two are getting bigger.

In the context of interest rates, a spread is the difference between the interest rate that a bank charges borrowers and the interest rate the bank pays depositors. Widening spreads means that the differences between the two are getting bigger.

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