Elections
will take place in a number of EU countries this year. And interestingly
enough, we will see those countries actively borrowing in the capital markets. Italy´s
government will be number one. They intend to issue public debt bonds totaling
€ 271 billion. That´s a lot of money, to be paid by future governments and the
younger people. France will be number two. They should be in market to borrow
over €200 billion. Even Germany, with general elections later in the year, will
be looking for fresh money in the financial markets: €160 billion.
The
point here is to spend a lot on public goodies to get the voters happy and
ready to support those in place. It´s short term politics against long term liabilities.
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