Reforming Southern Europe: What's Next?
Sep 26, 2018 | 09:00 GMT
(OLIVIER HOSLET/AFP/Getty Images)
- Italy will likely respect the European Union's deficit limits in its new budget, but the change of direction from deficit reduction to deficit increase could frighten financial markets about the sustainability of the country's debt.
- A controversial pension reform proposal in France will create temporary economic disruptions as different groups protest the measure, but Paris will likely push ahead with its plans regardless.
- The new Spanish government will aim to reverse some of the austerity measures of its predecessor, although the administration will face the constant risk of collapse.