Expect political fragmentation to continue in the Netherlands as a government with less than four parties seems unlikely. While coming from a comfortable position in terms of economic growth and public finances, political indecision risks undermining the Netherlands’ favourable medium-term outlook
After years of unchecked budgetary slippage, Belgium’s federal government is now attempting to launch its most ambitious fiscal consolidation effort since the 1990s. The signal is clear: it’s time for action. Yet, despite the urgency, a rapid stabilisation of the debt ratio remains unlikely
During the last two years, eurozone banks have been diversifying their sovereign bond portfolios, reducing a home-country bias. This is welcome news, and we expect this trend to continue.
