The protective shield that the European Central Bank (ECB) can use in extreme cases to protect certain countries from speculative attacks on the interest rates on their public and private debts, in the current environment of rising interest rates, will impose four weighting conditions and all of them must fulfilled in a “cumulative” manner, the ECB warned this Thursday.
Countries in need of support must meet at least four criteria cumulatively.
First. Comply with the rules of the Stability Pact, that is, do not violate the public deficit limit and respect the debt reduction rule.
Second. Not having serious macroeconomic imbalances, such as, for example, a huge external debt (including private) or moderate productivity.
Third. Public debt must be on a clearly sustainable path.
bedroom. The policies pursued in the countries requesting aid should be in line with the European Commission’s recommendations under the European Semester (the global assessment cycle for countries) and with the commitments made in the Recovery and Resilience Plan (PRR).
In the case of Portugal, most of the criteria currently appear to be guaranteed, if necessary. But there is a serious problem. There is one condition that casts doubt on and which could negate faster ECB assistance, as the conditions listed by Frankfurt, as mentioned, must be cumulatively complied with.
The only exception may be the debt criterion, as European institutions continue to express many doubts about medium (rather than long) term sustainability.
More information at Money
Source: El heraldo
Jason Jack is an experienced technology journalist and author at The Nation View. With a background in computer science and engineering, he has a deep understanding of the latest technology trends and developments. He writes about a wide range of technology topics, including artificial intelligence, machine learning, software development, and cybersecurity.
