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Opinion - By Bruno COLMANT, Ph.D., Member of the Royal Academy of Belgium
The European Central Bank (ECB) is ending its European debt purchase program, which it has conducted for over a decade. During this period, member states of the eurozone benefited from exceptionally favorable financial conditions, making it relatively easy to finance their budget deficits.
However, by terminating this support, the ECB is signaling a return to stricter and more orthodox monetary policies. This implies that states, accustomed to monetary leniency, will now have to face the markets without a safety net. This new reality will highlight their economic and fiscal disparities. The direct consequence will be a widening interest rate...
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