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Return of debt sustainability fears -ECB

Prolonged political instability a factor - stability review

Redazione Ansa

(ANSA) - Rome, May 24 - The European Central Bank on Wednesday raised the risk that eurozone public debt sustainability fears may return to financial markets. According to the Financial Stability Review, "the economic recovery of the last six months has boosted prospects concerning the sustainability of sovereign debt in the eurozone. A prolonged period of geopolitical uncertainty may slow economic growth and lead to higher risk premiums. That would increase the costs of funding and could trigger fears on the sustainability of debt in some countries".
   

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