Even so, financing costs for enterprises were only moderately affected. Compared to their five-year average, they actually decreased. Stock market developments, however, were rather diverse among industrialised countries. While the Japanese Nikkei ended the year with a loss of 3%, the American S&P 500 and the German CDAX recorded increases of 13% and 14% respectively.
The effect is on private investment since the private sector acquires a waiting option and finally, these effects slow down growth. Thus, the most important challenge to debt sustainability and this will restore growth trajectory to dislodge the market from this waiting option. To achieve this objective many difficult and far-reaching decisions have to be taken.