This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
European governments are spending unprecedented levels of money on COVID relief. Therefore, it’s only natural to wonder: how is this going to be paid for?
Germany might have the fiscal latitude to adjust its budget to address the issue. But what about countries like Italy, or France, which were already above EU debt guidelines?
The shutdown makes things more complicated for government finances. And not just because of the increased spending. In fact, since when has a government actually reduced its spending once given the opportunity to spend, anyway?
The economic fallout means that governments are expected to collect less revenue in taxes. And then there are countries, like Italy, they’re considering cutting taxes to stimulate the economy.
Where’s the Money Coming From?
A closer look at the much-vaunted “Next Generation EU” program that promises €750B in spending on the part of the central EU government, can give us some insight.
The EU plans to raise tho...
To keep reading this article, please navigate to: Orbex Forex Trading Blog.