Europe’s Big Bazooka

Moody’s Talks - Global Economy Unwrapped · Mar 18, 2025 · 53m

As the European Commission unveils its ReArm EU plan, Barbara Teixeira Araujo joins Andrew, Kamil, and Gaurav in trying to unpack the real implications of this big-bucks €800 billion package. The main question that remains unanswered is, “Is this really Europe’s ‘whatever it takes’ moment?” Barbara seems unconvinced, and the team raises some key questions about the feasibility of the plan, ranging from the lack of fiscal space to the rise in government yields, the risk this poses to market stability, and the potential crowding out of private investment. On a brighter note, Kamil welcomes the…