Further upside for Greece’s credit rating hinges on robust nominal growth, deeper fiscal consolidation, more reform of the banks and structural reform compensating for years of public and private under-investment.
Caution evident from the Fed’s minutes against cutting rates too quickly has supported the narrative of ‘higher for longer’.
Germany’s energy-intensive industries, low investment, ageing population and weak growth, rather than high government debt, represent challenges to its AAA credit rating – hence the need to reform the debt brake.