Central Banks
ECB’s Guindos Warns of Dangers Posed by High Government Debt
- He says fiscal slippage risks higher sovereign borrowing costs
- Vice president speaks at Euro Finance Week in Frankfurt
Luis de Guindos
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
European Central Bank Vice President Luis de Guindos warned that high levels of sovereign debt could prevent governments from addressing long-term economic challenges and consign them to low growth.
Speaking at Euro Finance Week in Frankfurt, Guindos said swelling primary budget deficits that push debt loads higher could result in a lack of spending room to tackle climate change, defense spending, digitalization and sub-par productivity.