Halister News

(Bloomberg) -- Highly indebted European countries would likely benefit from greater public investment among the stronger countries, Fergus McCormick, co-head of global sovereign rating at DBRS says in a press release.

• While fiscal stimulus isn’t without risks, the benefits of growth-friendly programs could outweigh them by fostering economic activity
• Sluggish growth and low inflation are among reasons some European countries are struggling to place their debt-to-GDP ratios on a firm downward path, leaving them vulnerable to external shocks
• Recent EC study showed that under current monetary conditions, fiscal stimulus may spark higher inflation, a further decline in real interest rates and currency depreciation, factors which tend to lead to an acceleration in economic activity
• NOTE: Mario Draghi will visit Brussels and Berlin this week with his increasingly urgent message that governments must act to bolster the economy