Spain’s borrowing costs soar following election

SPAIN’S short-term borrowing costs hit a 14-year high yesterday as political uncertainty about a solution to the eurozone’s debt crisis punished another southern European country.

EU paymaster Germany continues to block the two most widely-touted exit routes from a crisis that is shaking the world economy — massive European Central Bank (ECB) intervention to buy government bonds, or joint issuance of euro zone debt.

Influential ECB policymaker Jens Weidmann, head of Germany’s Bundesbank, spelled out his rejection of the former in a speech to employers in Berlin.