Kroll Bond Rating Agency (KBRA) has released a macro-market research report, “Weaker EU Governments Don’t Always Lead to Weaker Government Finances.”

The report highlights the situation in Europe, namely more difficult government formations and broadly weaker governments. Despite the new political realities, a secular strengthening of public finances has been underway in Europe as demonstrated by the improved structural fiscal balances in the European Union (EU) as a whole. Divergences exist on a case-by-case basis, but the generalized trend points to policy resiliency and to policymakers’ willingness to use the recent period of relatively benign financial and economic conditions to repair fiscal accounts. In other words, despite the changing political winds in the region, fiscal restraint has strengthened.

To read the report, please click here.

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.