Ukrainian Debt Sustainability Challenges Remain Heightened as New IMF Programme Talks Accelerate

NB Scope and IMF estimates are for public and publicly guaranteed loan stock of Ukraine including ERA loans. June -2024 IMF estimates made before Eurobond loan restructuring. Source: IMF, Scope Rating.Finding the financing gap represents a historical challenge – especially to the European Union Ukraine funding represents a historical challenge, given the IMF estimates that…

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Germany: Ambitious 2025-26 Spending Plans Likely Delayed, Weighing on Near-term Growth

Source: Deutsche finanzagentur, scope ratingInvestment expenses need to be targeted, to overcome time and complementary economic capacity It will be important to ensure that investments under special infrastructure funds do not convert the cost of investment from regular, core budget. To end this, the Special Fund law requires the share of investment in the main…

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France: Upcoming Confidence Vote Raises Further Uncertainty Over Budgetary Outlook

Given these weak fiscal estimates, the scope hopes that France’s government loan-to-GDP ratio increases from 113% to 2030 to 122% in 2030, above the government’s 117% target in 2029. While the scope is not the base line, a favorable result of the confidence-winning government will represent a significant success and support close-livestical trade-bands. Nevertheless, there…

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Germany: Successful Implementation of Infrastructure Investment Key to Growth, Fiscal Sustainability

Infrastructure investment gap Timely disbursement of EUR 500BN Infrastructure Special Fund through 2035 is important for the development trajectory of Germany. To ensure additionalness, the core budget will require to maintain investment levels. Planned investment mainly targets high-effects in road, rail and digital infrastructure, which must address the most important requirements to narrow the existing…

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Meeting NATO’s Higher Defence Spending Target Will Weigh On EU Credit Profiles

Currently assigned scope sovereign ratings defined by ratings. Source: IMF, scope rating forecast.There is an increase in military expenses to be quite different in Europe Importantly, the government debt forecast of scope rating is based on different rates of increase in defense spending. Governments of Central and Eastern Europe are expected to increase their efforts,…

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Global Economic Outlook: US, Europe Grow More Slowly Than Expected Amid Trade, Geopolitical Tensions

*Changes in compared to the global economic outlook forecast of October 2024. Negative growth rate presented in brackets. Source: Scope rating forecasting, regional and national statistical offices, IMF.Defense, infrastructure spent to reduce strong 2026 growth in Europe Scope expects a strong growth in Europe in 2026 as defense spending increases and governments implement measures to…

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Lagarde Stays Cautious After ECB Rate Cut, EUR/USD Faces Pressure from Trade Risks

The ECB also reduced its 2026 inflation viewing, which cited the economic possibilities of the weak proximity and frequent global trade risks. Inflation of services has become first stubborn, quite cold. Nevertheless, Lagard indicated factors such as protecting the European Union and increasing the infrastructure expenses that could support medium -term development. American trade policy…

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