The conflict between governments and the private sector over access to savings as a result of more restrictive monetary policies

We will use the example of the euro zone. Long-term interest rates are going to rise and the ECB will stop buying bonds. This may trigger a major conflict over access to savings between governments and the private sector: Governments need to finance fiscal deficits that will remain high at a time when the ECB stops buying government bonds; The private sector also needs to invest more: energy transition, financing the industries of the future. If long-term interest rates rise sufficiently, government bonds will become attractive again for investors, which could lead to a shift in savings from financial assets that finance the private sector to government bonds, and a crowding-out of private sector investment.