Breaking News

EDF Names Jean-Bernard Levy Interim Chairman, CEO
Tweet TWEET

BNP Paribas Says Market Pressure Helping Euro-Area Deficit `Discipline'

Rising bond yields for so-called euro area peripheral nations are working as a “discipline tool” by encouraging nations including Spain and Portugal to impose measures to cut their deficits, BNP Paribas SA said.

“The budget announcements in Spain and Portugal are evidence that market pressure is still bearing fruit, acting as a discipline tool,” London-based economists Luigi Speranza and Eoin O’Callaghan wrote today in a research note. “This is certainly a positive element looking forward. At the same time, there are still a number of risks. Episodes of further market tensions remain likely over the next weeks and months.”

To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.