ECB: Escalating Trade Tensions Increase Risks to Financial Stability

  • Eurozone
  • 21 November 2024
1

The European Central Bank, in its semi-annual financial stability report, concluded that escalating global trade tensions pose a risk to the Eurozone economy. He warned that the Eurozone faces the risk of another debt crisis if the bloc cannot boost growth, reduce public debt, and repair "policy uncertainty."

In its annual review of financial stability, the European Central Bank revealed that financial markets have seen a "recovery in volatility" since the release of its previous report in May, warning of more volatility "more likely than usual" due to overvaluations and concentration of risk.

He sounded the alarm about the possible return of "market concerns about sovereign debt sustainability." Referring to "high debt levels and high budget deficits", as well as tepid growth and uncertainties caused by "the results of the recent elections at the European and national levels, particularly in France".

Source (Al-Sharq Al-Awsat Newspaper, Edited)

Related News

Get an annual subscription in Al-Omran Al-Arabi Magazine

SUBSCRIBE NOW