France, Italy and Spain under pressure

Erste Group
By November 26, 2019 14:09

France, Italy and Spain under pressure

Week Ahead

The draft budgets of France, Italy and Spain for the coming year were (not unexpectedly) not well-received by the European Commission. Despite high debt ratios, none of the three countries plans to make any significant budgetary adjustment. Therefore, Italy's debt ratio is expected to increase further in 2020 (to 136.8% of GDP) and France and Spain's debt ratios are to remain high (close to 100% of GDP). In contrast, Austria is fortunately among the nine countries that meet the budgetary targets of the Stability and Growth Pact. In total, the public household of all Eurozone countries with a debt ratio of 86% of GDP can be described as very solid by international standards (US approx. 114%, Japan approx. 237%). Nevertheless, in the Commission's view, only Germany and the Netherlands have significant fiscal leeway to support growth in the Eurozone if necessary. 


Erste Group
By November 26, 2019 14:09


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