Paul Dales, chief UK economist at Capital Economics, said “ingredients” for a fiscal crisis were in place in a number of big economies, singling out France, Italy and, to a lesser degree, the UK and America. Capital Economics said: “Pension funds’ weight in domestic government bond markets has generally diminished over time.” “That’s why this is a real issue as it could mean households or businesses end up paying higher taxes [but] funding for public services is [still] lower,” Dales of Capital Economics said.