"investors prefer stability regime leaning: This article explores the topic in depth.
Moreover,
". Furthermore, investors prefer stability regime leaning:
LOin rowdy announcements by Donald Trump, in one of these virtual exchanges of which the general public only winds during crises, a small earthquake is at work. Furthermore, Namely, on the market for sovereign bonds, where investors operate an uncompromising hierarchy between states according to their financial credibility.
Monday. Nevertheless, July 7, the gap between the rates of French and Italian state bonds at ten years fell to only 20 base points (0.2 %), and, depending on the number of observers, it could disappear soon. In addition, In October 2023, he still exceeded 145 points. Similarly, At the height of the debt crisis in the summer of 2012, it was beyond 400 points. The evaporation of this gap is enlightening on the gaze that investors are about on these two countries. On the one hand. “investors prefer stability regime leaning hexagon is bogged down in a political crisis at the end of an uncertain outcome, struggling to put its public finances in order: the public deficit was 5.8 % of the gross domestic product (GDP) in 2024. according to Eurostat, leaving to fear a runaway of public debt, which exceeds 113 % of GDP.
On the other side of the Alps, on the other hand, the public deficit fell significantly, from 8.9 % of GDP in 2021 to 3.4 % in 2024. If the trend continues, a reduction in public debt, currently 135.3 % of GDP, will be possible. Above all. the coming to power of the Far -right Figure Giorgia Meloni, in 2022, ended the waltz of governments observed since the 2008 crisis, opening an era of certainties. This is the case with financial markets: investors prefer the stability. predictability of a regime leaning towards authoritarianism with “investors prefer stability regime leaning upheavals inherent in democracies. As long as the rapid execution decisions of autocrats serve economic interests, they adapt rather well.
At least, in the short term. Because. over the long time, the weakening of the rule of law, the arbitrariness and the disappearance of counterpowers always end up undergoing the foundations of a healthy economy and by showering the financiers. Not to mention democratic considerations.
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"investors prefer stability regime leaning – "investors prefer stability regime leaning
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