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Global Data Pod: Euro Area Debt Challenges

Global Data Pod

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Debt Challenges in Euro Area Countries

The chapter delves into debt challenges faced by Euro Area countries, analyzing the need for larger primary surpluses, impact of interest rates on debt dynamics, varying fiscal spaces, and necessary adjustments. It discusses stress tests showing differences in debt ratios between high debt countries like Italy and lower debt countries like Germany, emphasizing the importance of gradual fiscal consolidation with growth-friendly investments.

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