Tag: Debt stabilization

Public debt levels in advanced economies have decreased since the pandemic but remain high. Deficits in 2024 were elevated in most countries and fiscal effort will be required to stabilise debt. In the EU, public debt is projected to increase in the medium term, and although the primary balances required to stabilise debt are feasible, deficit cuts are significant in several countries. Adjustments are complicated due to spending pressures, population ageing and political resistance. Some countries in need of adjustment may be vulnerable to market sentiment changes.