Report
Patrick Artus

Did some euro-zone countries reduce useful public spending to correct their fiscal deficits?

From 2011, the euro zone had a very clear policy to reduce fiscal deficits. This policy may have had worrying effects if it led to a reduction in useful public spending: Spending on healthcare (the current crisis shows its utility); Spending on education and research (against the backdrop of labour market and technological transformation); Public investment, even though some investment (road infrastructure) is not always efficient. We see that useful public spending was reduced in many countries: France, the Netherlands, Spain, Italy, Ireland, Portugal, Greece and Finland. This will certainly lead to an upward adjustment in public spending in these countries in the future.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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