- Analytics
- News and Tools
- Market News
- Eurozone: The limit to the increase in fiscal deficits probably has been reached – Natixis
Eurozone: The limit to the increase in fiscal deficits probably has been reached – Natixis
FXStreet reports that analysts at Natixis note that all euro-zone countries have announced a massive budgetary response to the crisis but it is uncertain that governments have this unlimited budgetary capacity.
“We expect growth in 2020 (at an annual average) to come in around -2% in France and Spain, -3% in Germany, and -4% in Italy.”
“Given the loss of growth compared with what was expected (3 to 4 percentage points), we can expect an increase in fiscal deficits of at least 2 percentage points of GDP.”
“If all euro-zone countries are affected, a mutualisation of additional fiscal deficits reduces the weight for the peripheral countries but does not solve the overall problem of excess fiscal deficits.”
“The only solution is then monetisation of these additional fiscal deficits by the ECB, and therefore a significant increase in QE on government bonds (by at least EUR 250 billion if the additional fiscal deficits are 2% of GDP).”.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
