2min chapter

The Sound of Economics cover image

Debt dynamics: Exploring EU borrowing in changing times

The Sound of Economics

CHAPTER

The Impact of Interest Rates on the EU Budget

On current interest rates and on current market expectations, till 2026, we are missing half of 30 billion to pay for the interest rates. So what would they be implications for the budget? So either as Colonel was saying, we will have to cut on other programs that are including in the same category of spending. Or there are other solutions. And one of the solutions that we discussed in the paper and some things that we recommend is that during the negotiations that will take place actually in a few weeks about the review of the MFF. I don't know what was in their mind. Maybe at that time, the sort that interest rate will not rise forever, which was maybe an earlier view

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