Eurozone recovery ongoing, poitical risks rising – Moody’s

By FXStreet Moody’s rating agency is crossing the wires, noting that the Eurozone recovery is ongoing, while political risks rising, Reuters reports.

Main headlines

Euro area recovery ongoing, but reform efforts are fading and political risks rising

Fading fiscal consolidation, limited progress on structural reforms and an increasingly fluid political landscape limit upside potential and create longer-term risks

Credit quality of euro area sovereigns is supported by moderate economic growth and stabilizing debt-to-GDP ratios

Expects growth across the euro area to be around 1.5% of GDP in 2016

UK’s potential exit from the EU could create further obstacles to reform within the EU and also the euro area

Expects only a very gradual reduction in euro area sovereigns’ debt levels in the years prior to 2020

Refugee crisis is a further source of disunity in the EU that adds another obstacle to longer-term integration within the euro area‍​
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Source:: FX Street