Skip to main content

Political risks fall, but ECB tightening points to higher spreads

While we think that the re-election of Sergio Mattarella as Italy’s President of the Republic and the victory in the Portuguese general election of the current Prime Minister Antonio Costa’s socialist party reduce the upside risks to euro-zone “peripheral” spreads, we still expect those spreads to widen a bit over the next two years as the ECB reduces, and ultimately ends, its net purchases of government bonds.

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:

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


Get access