News from 2023-02-21 / KfW Research
Italy’s debt sustainability in the new interest environment: More challenging but still doable
Since the end of 2021, the yield of Italian government bonds rose by more than 3 percentage points, turning the question about the sustainability of Italy's government debt into an explosive issue. This One Pager analyses different scenarios: While the surprisingly high inflation of 2022 still contributed to reducing the debt ratio, in the long term the fiscal burdens resulting from the interest rate reversal will predominate. For Italy, every basis point counts.
Italy’s debt sustainability in the new interest environment: More challenging but still doable
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