Skip to main content

How big a threat is debt distress in Europe?

Falling interest rates will not prevent a rise in refinancing distress in Europe in the coming years – debt funding gaps will be large and forced selling will increase. However, financing pressures, on the whole, should be manageable. Our central forecast is therefore that a further crash in values can be avoided, but the recovery will be very weak. That said, a downside scenario with more widespread distress would risk larger price falls this year and next, with virtually no capital value recovery over the next five years.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access