Hurdles facing the European Union in its efforts to reach a comprehensive solution for Europe’s debt problem is negatively affecting Eurozone’s regional bond markets.

The yield spread between the 10-year Greek and German benchmark bonds widened further in early trade on Wednesday, to reach 860 basis points, after falling below 760 bps two weeks ago. News of a deeper than expected economic recession in Greece also affected bond spreads.

In Portugal, the 10-year yield spread reached 422 basis points and in Spain 220 bps, after falling below the 400 and 200 levels two weeks ago, respectively.

Portugal’s Finance Minister Fernando Texeira Dos Santos criticised the EU for its delay in reaching a comprehensive agreement on Europe’s debt problem, while Greek Finance Minister George Papaconstantinou, speaking in Brussels on Tuesday, stressed that “challenges are great and that it would not be enough just to reach expectations but to surpass them in order to offer a convincing answer”.