Posted 4/8/2024, 11:52:36 AM
European Budget Deficits Balloon, Sparking Tension with EU and Concerns for Future Growth
- Italy's deficit revised up to 7.2% of GDP from 5.3%, fueling fears of excessive deficit procedure by EU
- France disclosed 5.6% budget deficit for 2023, pushing debt trajectory higher
- Italy's 2023 fiscal slippage driven by increased spending on construction tax credit scheme
- Even Germany faces challenges financing infrastructure and defense spending
- Sharp fiscal corrections may be needed from 2025 onwards, risking dampened economic growth
