One is that the combination of a long period of historically low rates and the marked increase in the weighted average maturity of public debt has measurably reduced the sensitivity of debt to changes in market interest rates. The average interest rate will remain low for some time even if the marginal interest rate starts rising (Slide 13, left-hand chart).
Second, with average interest rates remaining low, and inflation receding only gradually, the strong expected recovery over the coming years should lead to a gradual decline in debt-to-GDP ratios (Slide 13, right-hand chart). Structural reforms and large-scale investments related to Next Generation EU should foster confidence in the capacity of euro area countries to generate sustained high growth.