Spain's proposed EUR 83bn debt relief for autonomous communities, equal to 25% of total regional debt, is credit-positive as it will reduce the regions’ debt burden but it risks moral hazard, underscoring the need for financing reform.

BP plans to appease disgruntled shareholders and reduce its heavy debt load amid a mild cyclical downturn in the oil market. Further declines in crude prices could exacerbate financial pressures.

The financial landscape is undergoing momentous change. European banks must navigate these shifts carefully to maximise profitability while mitigating risks.

Germany’s fiscal stimulus to decisively address its longstanding investment gap and immediate security needs could lead to EUR 625bn of new debt over five years, or 13% of GDP. However, sustaining long-term growth potential will require further reforms.

Europe’s real estate firms find funding respite but refinancing challenge looms; covered bonds provide stability in turbulent times; non-prime office segment faces rising vacancy rates; what can Frederick the Great tell us about today’s capital markets?

European corporate hybrid bond issuance could reach EUR 36bn in 2025, driven by a busy call schedule and lower subordination premiums. Almost EUR 25bn of hybrids hit call dates this year, rising to EUR 38bn in 2026.

Our distressed house price decline (HPD) benchmark assumptions for structured finance transactions have been updated to reflect real estate market vulnerabilities in 18 European countries under a severe economic shock.

UK bank profitability will remain high in 2025, supported by net interest income, a recovery in loan growth and positive contributions from structural interest-rate hedges. But profits will likely decline from previous highs.

France is heading towards difficult budgetary trade-offs to reconcile the government’s commitment to lower budget deficits while increasing defence spending given the country’s central role in strengthening Europe’s security architecture.

Is Germany at an inflection point? The expected coalition deal between the CDU/CSU and the SPD will set the course for whether Germany can boost defence spending, kick-start growth and restore competitiveness after five years of stagnation.