Real GDP in the euro area has expanded for 17 consecutive quarters, growing by 2.3% year on year during the second quarter of 2017, according to Eurostat – a rate that surpassed our projection at the start of the year.
The Global Financial Crisis led to many governments assuming the costs of rescue packages and the risks of the financial sector more generally, during the recession at a time when their tax revenues were falling and social expenditures rising. The result has been some very unattractive fiscal deficit positions and forward projections that will strain available funding.