Even so, social discontent may hinder swift progress given the scale of recent protests against pension reform. Capital investment required for the energy transition and enhancing military infrastructure, alongside direct support for Ukraine (whose foreign debt is rated by Scope at CC/Negative), also make reallocation of spending more likely than permanent cuts.
Thirdly, reducing the budget deficit and stabilising debt may require continuing, if not intensifying, consolidation efforts shortly before the next general elections scheduled for 2027. However, as elections approach, political commitments to cost cutting may fade, leaving part of the necessary reforms and consolidation efforts for an incoming administration.
Constraints On Tax Policy, Uncertain Economic Outlook Weigh On Budgetary Prospects
Current…
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