Here are the interest rates: http://en.wikipedia.org/wiki/Eurozone#Interest_rates
I am wondering why interest rates would be different in different European countries although they have a common currency and a common central bank that regulates credit supply. Something that really confuses me. Is the Eurozone’s economic structure different from that of a single country with a single currency?
They have different govts [=spenders of the borrowed money] and productive taxpayers [=sources from which to get the money to repay].
The Greek govt, for instance, spends tons of money, but has nobody to collect taxes from.
Which means if you lend the Grrek govt money, you may as well kiss that money goodbye. Therefore the Greek govt has to promise a huge interest rate to attract someone foolish enough to lend them despite the great risk of not being repaid.
Germany, on the other hand, has plenty of people to tax, so is less of a risk.