What could cause long-term interest rates to rise in the euro zone?

For investors and companies, it is vital to know whether - and when - long-term interest rates could rise in the euro zone. There are three possible scenarios under which long-term interest rates could rise in the euro zone. The ECB chooses to hike its key interest rates due to the drawbacks of zero or negative interest rates (weakening of banks and life insurers, real estate bubble). The obvious risk is that some borrowers could then become insolvent; The ECB does not move its interest rates but the yield curve steepens due to a decline in risk aversion and in the likelihood of a recession , leading investors to rotate into equities ; An external shock, for example a rise in US long-term interest rates under the effect of a different labour market policy after the presidential election, drives up long-term interest rates in the euro zone. While the third scenario is out of the euro zone’s control, one could imagine the second being followed by the first.