France and Italy: The worst-case scenario would be if the fiscal deficit-financed stimulation of demand turned out to be a failure

France and Italy have decided to stimulate demand by increasing the fiscal deficit in 2019 (increase in transfer payments to households, tax cut s for households). The worst would be if this stimulation did not work, since the long-term drawbacks of an expansionary fiscal policy would then have no quid pro quo . This could happen if, as a reaction to the fiscal deficits: The household savings rate rose; Imports increased sharply; Interest rates rose. Currently, we can see: A rise in the household savings rate in France, but not in Italy; Rapid growth in imports in France, but not in Italy; A rise in long-term interest rates in Italy, but not in France. Both countries are therefore faced with risk that the fiscal deficit - financed stimulus may be ineffective .