Europe’s Debt Is Rising - Voters have no appetite for government efforts to borrow less
Italy’s borrowings, for example, could soon exceed 140% of output again.
Late on Friday for example, Fitch Ratings observed that France’s aim to bring its deficit down to 3% of gross domestic product by 2027 “will be difficult to achieve.”
“Building popular support for bringing debt down looks challenging,” said Colin Ellis, a global credit strategist at Moody’s Ratings
Macron last week calling for a change of paradigm in EU rules over the mandate of the European Central Bank — whose unprecedented tightening has hugely increased France’s financing costs.
As officials also know only too well from the region’s sovereign debt crisis of the past decade, getting the balance right there in enforcing discipline isn’t politically easy.
Bloomberg 29 April 2024
Kommentarer