Tax & Spend
Euro-Zone Nations’ Public Finances Are Major Risk, ECB Warns
- ‘Necessary fiscal adjustment is large by historical standards’
- ECB calls for immediate and permanent reduction of debt
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Euro-area members must start reducing debt immediately in the face of enormous long-term fiscal risks from ageing populations, defence spending and climate change, the European Central Bank cautioned.
“These developments will be challenging enough in isolation, and countries will face all of them simultaneously,” it said Wednesday in an article. “Consequently, action needs to be taken today – especially in high-debt countries” grappling with elevated interest rates.