Flash Notes

21 de Julho de 2025
Monthly Report | Economic and Financial Market Outlook | July 2025

Public Finances (also) in the spotlight


The experience of recent years shows that confidence in the sustainability of public finances can evaporate quickly. More than 10 years ago, during the global financial crisis, the increase in risk premiums for the so-called PIIGS was also sudden and pronounced. In addition, it is important to consider that during these episodes, investors’ risk aversion increases, so the tightening of financial conditions tends to be generalised and the situation of each economy is not adequately differentiated. This requires redoubled efforts when the winds are favourable.