---
title: Italy and Spain shake off ‘periphery’ tag as borrowing premiums hit 16-year low
description: "For years, Italy and Spain were labeled the \"risky periphery\" of the Eurozone. Today? They are the new safe havens.\n\nHere is what’s happening in the markets right now (and why you should care):\n\n1. The 16-Year Milestone 📉 Italian and Spanish borrowing costs have hit their lowest levels relative to Germany since 2009. The \"risk gap\" is evaporating.\n\n2. The \"Tale of Two Europes\" ↔️ While the South is belt-tightening and growing, the traditional \"safe\" anchors are drifting:\n\nSpain: Set to be the world’s fastest-growing large advanced economy in 2025 (2.9% GDP growth).\n\nItaly: Winning over markets with fiscal discipline and a crackdown on tax evasion.\n\nFrance: Struggling with political turmoil and a budget deficit that has pushed its borrowing costs above Spain’s.\n\n3. From \"PIIGS\" to \"Prudent\" 💎 Remember the Eurozone crisis? That memory is being replaced by a new reality. Fund managers like Vanguard and BNP Paribas are no longer seeing these as \"distressed\" assets. They are seeing them as core investments.\n\n4. The Institutional Shift 🏦 The ultimate signal? Ultra-cautious central banks are now looking at Italian and Spanish debt for their foreign reserves. That is the highest stamp of approval a sovereign bond can get.\n\nThe Lesson: Markets have long memories, but they aren't static. Resilience is built in the tough times.\n\nThe \"periphery\" isn't the periphery anymore. It’s the engine. 🚀\n\nAgree? Or is this just a temporary honeymoon phase for the South?"
---

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# [Italy and Spain shake off ‘periphery’ tag as borrowing premiums hit 16-year low](https://blog.syzgroup.com/syz-the-moment/italy-and-spain-shake-off-periphery-tag-as-borrowing-premiums-hit-16-year-low)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | Dec 29, 2025, 11:14:25 AM

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