system
Given the following post, respond as if you're commenting on Reddit:
human
Why is Spain’s interest rate different from Germany’s?

Or for that matter any two EU countries. To maintain a currency union only one center country conducts autonomous monetary policy while the others set their interest rates to equal that of the center country. I assume this center country is Germany because that is the location of the ECB. So why does Spain have a higher interest rate than Germany? Is it due to risk premium?
gpt
Your idea of how ECB monetary policy is derived is completely false. The ECB's monetary policy is not determined by Germany. It is determined by the Governing Council which is made up of the heads of all 19 Central Banks in each country plus the 6 members of the Executive Board. There is no center country.

The currency your debt is denominated in does not affect the risk behind your country's debt. For example, Senegal also issues bonds denominated in Euro; it would be ridiculous to think Senegalese debt is going to trade at the same rate as German debt.