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2min chapter
Debt dynamics: Exploring EU borrowing in changing times
The Sound of Economics
The Impact of Interest Rates on the EU Budget
Gregory: Why are interest rising on EU debt? That's an important question that everybody is asking about. And the second thing that we do in the paper is also to estimate what will be the impact of this on the EU budget, because as Connor just said, part of it will be born by the EU budget. He says inflation has been really high and above the ECB target, so the ECB needed to increase rates. So when the ECB increased rates, all euro denominated rates increased at the same time,. It's the case for all sovereigns, and therefore the EU is no exception.
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