Euro area credit ratings under pressure from fiscal challenges
From omfif.org
Reducing public debt in Europe is feasible based on past fiscal adjustments. But some governments are struggling to agree and implement consistent medium-term fiscal plans. In these circumstances, debt sustainability hinges on boosting growth where the outlook is only partially encouraging. Growth will be a moderate 1.0% in 2024 and 1.8% in 2025. The European Union responded well to the pandemic and energy crises. The economy recovered swiftly but raising the region’s long-term growth potential remains critical. Accelerating the implementation of Next Generation EU reforms and investments is imperative, as is ...
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