However, when a financial system corresponds roughly to the territory of a single sovereign state, the sovereign risk strongly binds risk perception by the financial system and therefore fundamentally constrains the financing capacity of the economy. As the international financial crisis was unfolding, there has been, since late 2009, a significant differentiation of sovereign risk premium in a number of euro area economies.
This view looks to equity markets as a key influence on the trend in consumer spending over the rest of this year and next. Another factor said by some to account for the spending slowdown is the rising debt burden of households.