As the cepDefault-Index shows, the trends in creditworthiness over the last year have varied between the eurozone countries. Thus the ability to repay debts of two-thirds of eurozone countries (including Germany) is steadily increasing whilst in others it has been falling continuously or is already lost.
The group of eurozone countries who have long had diminishing or diminished creditworthiness, includes Greece, Italy, Latvia, Portugal, Slovenia and Cyprus. As was already the case in 2014, France also finds itself in the group of countries whose creditworthiness is declining. In cep’s view, the depletion of capital stock in these countries shows that they are unable to offer attractive conditions to potential investors. The first objective of structural reform must therefore be to make these countries more attractive to investors.
Presseinformation 11/2018 (publ. 30.01.2018)