Economics
Europe Facing ‘Ticking Time Bomb’ as Pension Reforms Stall
- Italy, other highly indebted countries most at risk, HSBC says
- Nations will face pressure to cut other spending, raise taxes
This article is for subscribers only.
Europe’s failure to reform out-dated pension systems has created a “ticking time bomb” for the region’s public finances, accord to HSBC Holdings Plc.
Those nations with the highest debt levels are the most at risk, while political U-turns on recent reforms threaten to compound the situation, the London-based bank said. Italy could see its borrowings rise to 150 percent of economic output by 2040, even without the populist government’s proposed rollbacks.