Spain's GDP growth is outpacing the euro area, but expenditure pressures continue to challenge public finances, demanding comprehensive reforms on regional financing to ensure long-term sustainability.

EU policymakers remain steadfast in their conviction that deploying bank and institutional capital and retail savings through frictionless banking and capital markets union will create economic security. An EU MidCap Bond market should be a priority.

The UK higher education system enjoys a strong reputation globally but increasing pressure on the sector’s funding model has rendered the financial viability of some universities uncertain.

Germany’s Länder are likely to borrow around EUR 10bn more than originally planned this year as they face weak domestic economic growth and federal budgetary constraints.

The proportion of Italian sovereign debt held by foreign investors, a potentially less stable source of demand than the ECB and residents, is rising and will make Italy more susceptible to changes in market sentiment in coming years.

The German government is maximising the modest leeway it has under the so-called debt brake to inject public funds into the economy, but the measures are insufficient for addressing the country’s large and widening investment gap.

Egypt’s public finances remain vulnerable to external shocks given the government’s limited fiscal space though external support, increased foreign direct investment and progress on reforms are improving resilience.

A hung parliament in France mitigates risk of significant fiscal slippage due to the policy agendas of the far right or radical left. Still, reform momentum will likely stall given the need for compromise by centrist parties and the political extremes.

The Labour Party won a landslide victory in Thursday’s UK general elections but long-run challenges will endure, including dealing with rising debt and reviving the economy while hitting fiscal targets. But the results at a minimum ensure a clear mandate.

Higher-for-longer rates heighten the stakes for sovereign debt sustainability especially as financial-market and institutional checks on excessive borrowing of rich countries are weaker than they were several years ago, says Scope Ratings.