The European Commission's comment that certain member states have failed to adequately address their fiscal deficit was followed by a widening of spreads on European sovereign credit default swaps. Greek CDS spreads saw the largest movement. German Chancellor Angela Merkel's statement that Greece should not rely on a rescue from the EU was seen as a contributor to the situation. Meanwhile, spreads on other sovereign swaps, including those on Italy, the U.K. and France, also widened.
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