EU Commission Sees Slower Eurozone Growth Next Year

The Commission's acknowledgement that near-term resilience is giving way to slower growth matters less for the headline than for the policy constraint it implies: fiscal consolidation is being urged precisely as financing conditions tighten. Rising government bond yields across advanced economies shift the burden onto sovereigns that have already spent heavily on energy support, leaving less room to absorb another shock. Whether medium-term consolidation plans hold as growth cools is the open question, and it is one that will shape how much fiscal space eurozone members retain.