Reported 5 days ago
European Central Bank Vice President Luis de Guindos cautioned that excessive sovereign debt may hinder governments' ability to confront long-term economic issues, potentially leading to sluggish growth. During a speech at Euro Finance Week in Frankfurt, he highlighted that rising primary budget deficits could limit investment in crucial areas such as climate change, defense, and digitalization. Guindos noted that the shift in macroeconomic risks from inflation concerns to economic growth fears reflects a challenging outlook for the region's financial stability.
Source: YAHOO