CDS spreads widen following EC concerns over deficits

European sovereign credit default swap spreads widened on Thursday after the European Commission expressed concern that member states are not addressing their large fiscal deficits.

The cost of five-year credit protection on Greece saw the biggest movement, widening from 287.7 basis points at the close on March 17 to 313.7bp at 13:30 GMT on Thursday, according to CMA DataVision. As well as the EC’s statement on fiscal deficits, indications from German chancellor Angela Merkel that Greece should