User:Nick Gardner /Sandbox

An example of such an occasion occurred in 2009 when the difference between the yields on Irish and German 10-year bonds reached 2.5 per cent). The circumstances that govern that possibility are considered in the article on fiscal policy. Financial instability could result if the interest rate increase raised the perceived risk of default and prompted a succession of further rate increases. The importance of maintaining investor confidence in the safety of their bonds has led the authorities in the European Union and in the United Kingdom to announce their intention to adopt deficit-limiting rules.