My aim in these posts is to use my language skill to present you a more comprehensive European press view that you won’t get on other blogs. Hopefully, this gives you a more balanced perspective of what different European constituents are saying about the sovereign debt crisis.

I have already highlighted some of the issues being reported on Eurobonds. But I should point out that I believe the Germans are already considering Eurobonds despite official denials. The Germans want to explore all of the eventualities and will only discuss the palatable ones in public. The article in Der Standard from Austria points to this likelihood.

The other major story is contagion. The English-language press has had considerable coverage of downgrades in Portugal, France and Hungary. What they have not got a lot on is the contagion into eastern Europe. Poland’s currency is tanking as a result. Moreover, the halt of Austrian loans into central Europe is creating a credit crunch there which will negatively affect the economy irrespective of the macro fundamentals (which are poor due to real economy effects out of Euroland). Slovenia, a former model country in the east, is the other major target of contagion.

• Schuldenkrise: Schröders Rezept für Europa steckt voller “Giftpillen” – Nachrichten Wirtschaft – WELT ONLINEDie Welt reports former German Chancellor Schroeder wants a United States of Europe to be able to compete with the US and Asia in the future. He believes that ECB liquidity and Eurobonds are part and parcel of that vision.
• Umfrage: Mehrheit der Deutschen lehnt Euro-Bonds ab – Deutschland – Politik – HandelsblattHandelsblatt reports 57 percent of Germans polled are against Eurobonds. Not only would this represent a transfer union, but it would also increase German interest rates. Is this a nationalistic response to crisis: yes? Remember, however, the transfers Germany has already made to bring eastern Germany into the fold over the last twenty years.
• Barroso fühlt sich von der Bundeskanzlerin verratenGerman daily Die Welt says Barroso and Merkel’s relationship is in tatters over her dismissive treatment of his Eurobond proposal, rejecting it even before it was presented.
• Nächster Wackelkandidat: Slowenien | kurier.atAccording to Austrian newspaper Kurier, Slovenia is the next place to watch for serious contagion with interest rates having risen above 7% for two weeks straight due to a doubling of government debt since the credit crisis began.
• Deutsche Front gegen Eurobonds bröckelt – Finanzmarktkrise – derStandard.at › WirtschaftAustrian daily Der Standard says that “the German front against Eurobonds is crumbling.” This is very much at odds with what you hear in the English-language press. “In the battle on ways out of the debt crisis, Eurobonds are being hotly debated, but weakens Berlin’s rejection.”
• Euro-Schuldenkrise: Anleger fliehen aus polnischem Zloty – Rohstoffe + Devisen – Finanzen – Handelsblatt“The Euro debt crisis has put the Polish Zloty under pressure. Blame is apparently on currency speculation. Poland fears crossing the permissible indebtedness mark of 55 percent of GDP.

This post originally appeared at Credit Writedowns and is posted with permission.